Live-In Flip: DONE!

[Kristin McPherson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $40,000
Cash invested: $60,000
Sale price: $186,000

https://www.zillow.com/homedetails/29-23rd-St-SE-Moultrie-GA-31788/105198084_zpid/?view=public

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

We needed an affordable home for our young family of 8 (kids were ages 3, 5, 6, 8, 10, 12 at the time). House was unfinanceable because of its condition, so my dad helped us pay cash, and my husband spent the summer getting it habitable for us to move into six months after purchase. We then completed a large project annually.

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

It was an REO foreclosure. Price had already dropped several times and sat at $69K when we offered $42K. We negotiated to $52K but then went back down after inspection showed so. much. work. to. be. done. They pitched in closing costs and we ended up $40K out of pocket.

How did you finance this deal?

Cash borrowed from family member

How did you add value to the deal?

Complete remodel of every room while inhabiting the home. Took 7 years.

What was the outcome?

We basically lived there for free for seven years. I don't have exact cost of rehab, but we estimate that we were all in at no more than $100,000 (probably including our furnishings, so I suspect we ended up with 100% profit).

Lessons learned? Challenges?

SO MANY! We want to do it again... but definitely not while living there (with six young children, no less!).

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

Norris Bishop Realty of Moultrie, GA