What I thought I would Flip

[Alex Coffey]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $38,000
Cash invested: $30,000

Purchased this from our marketing, that we do a lot of direct to seller on. This house was a lesson .

1. I didn't check if it was in a flood zone ...Minor head ache but that didn't bother me because history showed area hasn't flooded in over 15 years.
2. learned how to apply to re zone a house to get out of flood zone
3. This didn't sell because of the flood zone . I was confident in my numbers so I knew what I could get out of it even if I had to hold as a rental and thats what i did.
it didn't sell for 100,000 i just had it appraised because I am going through a refi and it appraised at $125,000 with a 70% LTV

Loan amount $55,000
All In $70,000 ( went over )
Cash out on Refi $87,500 . $4,000 in fees
83,000 - $70,000 All in = $13,000
Cash flowing 300/ month currently

Headaches and hiccups will always arise. We are paid directly in proportion to the problem we are solving what i learned. Projects never go as planned, if you are confident in your systems, and numbers and most importantly yourself..
This is currently rented for $1,100 / month

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

It fit into our buying criteria. And then when I put it through our buying formula the numbers made sense

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

I found this from our marketing efforts. I do a lot of Direct To Seller So we are walking avg 3-5 houses a day.

How did you finance this deal?

I used 3rd party lending I just used my money for the gap funding.

How did you add value to the deal?

Forced appreciation. There wasn't really any room to add another bedroom per say. I found out that back in the 50s it use to be a flower shop which I thought was cool .

What was the outcome?

I've owned it 14 months now
It wouldn't sell for 100,000 when I was finished which kinda sucked at the time because reserves were really low so I wasn't happy at the time but in the end I am happy with how it is turning out

it just appraised for $125,000

Lessons learned? Challenges?

Headaches and hiccups will always arise. We are paid directly in proportion to the problem we are solving what i learned. Projects never go as planned, if you are confident in your systems, and numbers and most importantly yourself..
This is currently rented for $1,100 / month

If you are confident in your numbers and yourself thats all that matters

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

not on this one.