Fixer upper rental to flip after a year

[Alex Smith]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $55,000
Cash invested: $15,000
Sale price: $140,000

Contributors:
Dawn Curry

Made settlement yesterday on our 6th unit! it’s a 3 bed, 2 bath single family home. We bought this one with a construction loan. We put 25% down on the purchase price (55,000) and were able to incorporate almost 20,000 in the loan that we will take out in draws for the renovation. When Reno is complete, it’ll be rolled over into a conventional loan totaling $61,000. Getting in and out of this one quickly because we already have a tenant lined up to move in November 15th :)

Fast forward a little over a year....some big ticket maintenance items popped up and the market picked up, so we gave the exterior a face lift and took care of any issues with the house. We were all in for around $96,000. January, 2021, the home sold for $140,000 and after closing costs and taxes we profited roughly $27,000.