First Home Purchase 2015

[James Thomas]

Investment Info:

Townhouse fix & flip investment.

Purchase price: $127,000
Cash invested: $15,000
Sale price: $169,000

This was my first home purchase.
it was a 3 bed, 2 bath, 2 car townhome on a large greenbelt. All the neighbors were seniors, so it was quiet and well-kept.

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

This was somewhat a no-brainer to me. It was 20 years old, in great structural condition, in a perfect location, and the price was right.

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

Everything about the house was original, so there was a good bit of updating to do. These needed items allowing me to offer $10K less than asking, which was accepted.

How did you finance this deal?

I financed this 100% with a 30 yr. rural development loan.

How did you add value to the deal?

After closing, I began renovating the kitchen and painting the entire interior. I replaced toilets, bath cabinets & tops, all light fixtures & wall plate covers, door hinges & handles, installed wood wall T&G in the main bath, and I installed a 3-phase water filtration system (this was a huge value add).

What was the outcome?

The upgrades made the place far more livable, and added a clean, modern feel to the home, which made for a fast, easy sell.

Lessons learned? Challenges?

The main lesson learned was, always keep an asset. I was focused on making $40K by flipping it, but now, 3 years from the time I sold, I realize my returns would have been ongoing and close to $40K, plus tax benni's!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I sold the property FSBO via Zillow.com, but I had a realtor ask if she could show it to her clients. After she brought in a few showings, we established a working relationship, and now I recommend her to everyone in need of a realtor!