Live-in Flip, Held for 2 years to avoid capital gains tax

[Matthew Hastings]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $85,000
Cash invested: $4,000
Sale price: $176,000

Short sale. Live-in Flip. Held for 2 years to avoid capital gains tax.

What made you interested in investing in this type of deal?

I saw this house on the market as a short sale. Extremely under valued.

How did you find this deal and how did you negotiate it?

Found it on the MLS. Negotiated with the bank. They asked for $95k, I got them down to $85k.

How did you finance this deal?

VA Loan

How did you add value to the deal?

New flooring. Removed popcorn ceiling. New master bath. Tiled guest bath. New kitchen cabinets/counter. Fixed termite damage.

What was the outcome?

$85k PP, $25k rehab = $110k investment. Sale price was $176k. After closing costs we profited $55k