Started off family home turned fix and flip

[Mike Downing]

Investment Info:

Single-family residence fix & flip investment in Houston.

Purchase price: $145,000
Cash invested: $88,000
Sale price: $350,000

Was planning on this being a semi-permanent family home... but of course a deal that was too good to pass up came along, and so we sold it in a hurry to purchase another single family. Needed the cash quick and had never given any thought to a refinance or HELOC. Super stressful for the family, but got the cash I needed to move forward and buy what I consider to be a unicorn deal off Craigslist.

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

It started off as a family home

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

An old family friend was selling properties and this fell into my lap... just a no brainer great deal.

How did you finance this deal?

30 yr conventional with a home style renovation loan

How did you add value to the deal?

Fully gutted and rebuilt the home

What was the outcome?

Got a great deal of cash from the home

Lessons learned? Challenges?

Very difficult dealing with a bank to get cash to renovate a home. Lots of red tape, but ultimately made me stronger with my organization, planning and creativity.