First Flip Underway in Pasadena Maryland

As of December 8th 2015 I’m officially a real estate investor! Ok so this has been a long time coming…I started this venture in late May of this year and have spent a lot of time of the past six months preparing through education, networking, structuring and doing. However, it feels great to have my first property under contract, settled and work beginning.

The property is a single family, single-story, 3/1 rancher located in Pasadena, MD with a little over 1,100 sq. ft. of living space. This is another HUD property that was listed for sale at $156,800 which I was able to purchase for $132,000. I’ve hired a general contractor to do the rehab work for $45k, and the estimated ARV is $240k.

Property acquisition was done using hard money for 100% of the purchase price at 14% and 4 points. The rehab and other fees are being covered by myself using seed capital I’ve raised along with money from a private investor.

The rehab will include converting the smallest bedroom into a second bathroom and closet attached to the master. The front bedroom will be converted into two rooms so the new layout will still have 3 bedrooms. The wall separating the kitchen and living room will be partially removed to open up the space and allow for a new updated kitchen and new appliances. The existing bathroom is also being updated. New floors are will be installed throughout the house along with a new AC unit and gas furnace.