First time flip and real estate investment

[Lynette Fisher]

Investment Info:

Single-family residence fix & flip investment in Wyandotte.

Purchase price: $70,000
Cash invested: $60,000
Sale price: $225,000

This house was set for demolition by the city for being vacant so many years. It required all tube and knob electrical to be replaced. We tore all the plaster walls out for the complete rewire. 1600 square feet was completely rehabbed along with a full basement that had a full bathroom. The first floor did not have a bathroom so we replaced an under the stairs closet as a powder room. The home was 4 bedrooms and 3 bathrooms once finished.

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

We wanted the first deal to be a flip for the profit to allow us to finance more deals. This home was a great opportunity to be rehabbed in the downtown area of a great city.

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

My realtor found this house for us. It had been set for demolition by the city and the bank was trying to get money for it fast. It was listed on the MLS for 94k and we offered 70k. The offer was accepted the next morning.

How did you finance this deal?

We used a HELOC from our primary residence that we set up to start our investing journey.

What was the outcome?

We definitely spent double what we originally budgeted, but during the rehab the market went crazy and we sold if for much more than we anticipated. It was the most educational part of our real estate investing journey so far. The day we closed on the sale of the our first flip we also closed on the purchase of our first BRRRR.

Lessons learned? Challenges?

Finding contractors was our absolute biggest challenge. My husband and I ended up doing everything other than electrical, plumbing, and HVAC. We learned timing, budgeting, project planning, relationship building, and the power we have working as a team.