KC Urban Core - first flip in KCMO

[Olga M.]

Investment Info:

Single-family residence fix & flip investment in Kansas City.

Purchase price: $34,000
Cash invested: $24,000
Sale price: $100,000

Bought a home initially to fix and rent.
We stayed true to the style of home when rehabbing.
Did a personal appraisal because I thought it was worth more than the going price of the neighborhood.
Comp came in at $100k, in a typical $50k neighborhood.

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

I needed to start somewhere with cash.
This neighborhood lent itself to it.

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

I found it through another local Realtor investor (owner).
He listed it and was unloading it.
Most ugly, and problematic tenant occupied house on the block.
Negotiated it in person.

How did you finance this deal?

Cash.

How did you add value to the deal?

We met in the middle.
I got it for under asking.

What was the outcome?

Bought the home.
Rehabbed it, but then I decided to sell it.
Almost doubled my investment.
Long-time homeowners were extremely happy to have a new homeowner rather than tenants.
Sold to a local female veteran.

Lessons learned? Challenges?

Be open minded about what you buy and what you plan on doing with it.
Listen to your gut, despite what comps and people state.
I was told I wouldn't get get more than $50k initially; then $80k.
Be willing to spend $500 on a private appraisal to earn thousands more.

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

I represented myself (Realtor) in KCMO.