Fix & Flip | First Investment Project!

[Ariel Sears]

Investment Info:

Single-family residence fix & flip investment in Franklinville.

Purchase price: $55,000
Cash invested: $150,000
Sale price: $390,500

Contributors:
Kyle Sears

When my husband and I bought our first home, we wanted something we could build equity in, so we bought a 55k foreclosure on 2+ acres. Once we saw the 2020 boom in the housing market, we knew it was time to sell.

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

When we decided to buy a home, we knew we wanted something that we could sell later for profit instead of acquiring debt, so we specifically looked for a low-cost home, so we could force appreciation.

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

This house was a foreclosure that we bought first day on the market, offering $500 over asking price.

How did you finance this deal?

We used a conventional construction loan to finance and rehab the property.

How did you add value to the deal?

Complete Rehab

What was the outcome?

150,000+ in profit, place to live for 2+ years, and a wonderful learning experience

Lessons learned? Challenges?

We over improved this house when renovating. In the future, we plan to be more conscious about cheap and affordable style choices. We also learned that we want to find houses that we can rent in the future in order to buy and hold. We also learned the importance of finding the right contractors to assist with the project.