This property had been on the market for over a year. The main issue - and the reason it was such a low price (and scared buyers) - was the foundation which was sagging and cracked. But the market in Loveland has always been hot and I knew it would be worth it to repair. The house was was built in 1895! But adorable with a super cute shady back yard with a private alley access. The house is only 975 sf. The image looks larger. Two beds / one bath. Beautiful old hard wood floors. Truly a 'starter' home for a young family (which indeed turned out to be the case).

After all due diligence was done and it was structurally inspected, we had the foundation beams totally replaced, the concrete blocks repaired and perimeter mudjacked. That was about $37,000. Not too bad to literally raise the house back up! The interior needed the standard repairs and upgrades, exterior was painted and the back yard cleaned up all for about $42,000.

The original loan was hard money for 80% LTV @ 10% over 18 months. The rehab funds were also hard money @ 12% over 18 months. We sold the house less than two weeks from completion and listing. FUN project.

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

Having gotten a bit of courage after doing my first fix and flip of a fairly typical condo the year before, I had seen this house on the market for a long time and investigated. The price was so low, I jumped in. AND I loved the style! It deserved another chance!

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

Passed it many times and noticed it wasn't moving. Looked it up and threw out a SUPER lowball number (Expecting a no go) and it was accepted.

How did you finance this deal?

I SCRAPED up 20% from various sundry family members lol ($24,000). Then secured primary hard money for 80% LTV @ 14% YIKES on with short term 12-18 months. I could not get a traditional loan for various (credit) reasons but also because of the condition of the house. Appraisal was not good. Had to go for it though. Rehab dollars were the same terms but @ 12%. Was pretty scary thinking about it but I tried not to. You cannot stress the numbers. Just go for it.

What was the outcome?

Made $86,000 on the flip! House sold in less than two weeks on the MLS.

Lessons learned? Challenges?

JUMP IN. Do your common sense diligence but don't overthink. You can (almost) get out out of any deal. As a Realtor, with my own deals, I try to add as many exits / escape clauses as possible...