1st home also 1st investment / Live in Flip

[Tara S.]

Investment Info:

Single-family residence other investment.

Purchase price: $98,000
Cash invested: $25,000
Sale price: $305,000

Contributors:
Justin Sullivan

Purchase price $98,000
Reno $45,000
Refinanced after 1 year for $125,000 (pulled out $14,000)
Sold for $305,000
Cash at closing $167,000
Total cash profit $176,000

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

We needed a place to live and my husband knew he didnt want to buy at full value he wanted something to build equity in. I was very new and clueless but I had faith in him and we bought the house and decided to do all the work ourself since he was a contractor and I was very handy myself.

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

It was on the MLS for $96,000 then removed the day we went to make out offer and listed for auction. We won the auction for $98,000 when we get to the house we realized the bank installed a brand new roof in the 2 days they took it off the market and listed it on auction.com

How did you finance this deal?

Cash downpayment (my dad had $20,000 for us for our wedding instead we bought a house and got married at the court house) the balance and Reno was Hard money

How did you add value to the deal?

We completely renovated the entire house and gave it a very trendy modern design. That contributed to it being so desirable.

What was the outcome?

We lived in it for 4 years until we were ready to move once the market became so hot we couldn't stay any longer we knew we would get the most for it if we moved now.

Lessons learned? Challenges?

The biggest lesson learned is doing the work yourself does not save you money. It costs you more in carrying costs and time then it would have been to just hire out.