3 bed 1 bath SFR flip in Hampton

[Helen Lowery]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $94,900
Cash invested: $28,162

We just picked up this 3 bed 1 bath home in Hampton and are in the process of flipping it. It is a 1949 home and so we are updating electrical, repairing siding, putting in a new forced air HVAC, new flooring, paint, etc. We are using a commercial loan... borrowing the cash for the purchase and rehab. Stay tuned!

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

It is a seller's market right now in Hampton. Inventory is low and buyers are having to compete for what is available. I have 2 projects going in this neighborhood and both are my "first flips" together. Both projects are considered cosmetic flips.

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

I found this deal on the MLS. It was an estate sale and I paid list price for it.

How did you finance this deal?

I took a commercial loan out under my LLC (I am personal guarantor) through Finance of America. I really love this lender and will chat with anyone who wants to know a bit more about them. I put 20% down on the purchase price + rehab cost. There is a 2.5% origination fee, 10% interest only payments, and some other fees that add up to 1-2pts. They also have a buy and hold loan, so if I don't sell, I plan to refinance with them.

How did you add value to the deal?

Both projects are 1949. I started in the crawlspace with termite and fungal treatments, new poly, and any needed repairs. I repaired and updated electrical and plumbing where needed. Both properties got new water heaters and new stacked washer/drier units. New flooring, shingle replacement and roof repair, interior and exterior paint, and new tub/shower surrounds.

What was the outcome?

Stay tuned.... :)

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

I am a real estate agent and so that has been incredibly useful, especially in terms of market research.