1st project getting started in Real Estate!

[Justin Victorino]

Investment Info:

Single-family residence fix & flip investment in Metuchen.

Purchase price: $215,000
Cash invested: $60,000
Sale price: $345,000

HUD home purchased in a quiet neighborhood to fix and flip as my first project. What made this deal easy was that the homes in the area are all cookie cutter with the same format and I grew up in this neighborhood when I was younger. It was an incredible experience getting started in real estate investing as the first project and this is what got the ball rolling!

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

The property was in a town where I grew up in

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

I found this deal by driving for dollars and placed a bid based off of the ARV of the properties in the area

How did you finance this deal?

I used my own cash for the 20% down payment and raised capital through private investors to fund the rehab. Since it was a primary home, I lived in it while fixing it up for a whole year and house hacked the first floor while living in the attic upstairs. After the house was rehabbed, the mortgage was $1600/month and I rented out the first floor and basement for a total of $2100/month

How did you add value to the deal?

All cosmetic updating and minor exterior curb appeal. New bathrooms, kitchen, fresh paint, new driveway, walkway, and back patio

What was the outcome?

I learned how to house hack and fix and flip during this first deal. I had the property for 18 months and did everything from start to finish. Acquiring the property, rehabbing it, renting out the other rooms, listing it as a FSBO, marketing the house, and closing on it!

PP: $215,000
Rehab: $60,000
Sale Price: $345,000

Lessons learned? Challenges?

Lesson Learned: GET STARTED

Challenges: The entire process start to finish

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

I will recommend my contract that I hired to anyone that needs him here in the state of New Jersey