My First Investment Property

[Joe Orsene]

Investment Info:

Single-family residence fix & flip investment in Bemus Point.

Purchase price: $186,000
Cash invested: $42,000
Sale price: $450,000

Lake House in Bemus Point, NY. It was vacant for 8 years and required a total remodel inside and out.

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

I am an empty nester who needed to find ways to be productive with my time. I took a big risk by doing the remodel on my own, but I learn so much.

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

I was working with a Real Estate Agent looking for a Condo for short term renting but I just could not make the numbers work. Our discussions and great timing this property became available to me. The family was interested in dumping the house quick and my cash offer was what took me over the top.

How did you finance this deal?

I took out a HELOC on my home to make a cash offer and pay for the remodeling.

How did you add value to the deal?

I completely gutted the house inside and out. Replaced picture window with 15 foot slider, built a deck, added a laundry room, installed new hardwood floors, replaced the walls, ceiling, moved windows and doors. I added a gas fireplace and installed vinyl siding.

What was the outcome?

The property went from an eye sore of the neighborhood to equaling the surrounding properties.

Lessons learned? Challenges?

My biggest challenge was educating myself on building codes to ensure that I did things right the first time.