Investment Info:
Single-family residence fix & flip investment.
Purchase price: $47,500
Cash invested: $23,500
SFR bought off the MLS. Property was a Fannie foreclosure, and the owner had let a herd of dogs run wild in the house. Terrible smell allowed for us to get in at a great price point. The numbers look very good to make a profit, which is great considering this is my first flip. So far I've spent about $13K, and have about $10K remaining of expenses. I'm doing a majority of the work myself, so this project will hopefully be done by the end of February.
What made you interested in investing in this type of deal?
I had been wanting to get my first deal for a while, and the numbers finally made sense on a house just a few blocks away from my own home.
How did you find this deal and how did you negotiate it?
MLS. There wasn't much negotiating involved, since the foreclosed government loans just gradually decrease in asking price until a buyer gives them the asking price.
How did you finance this deal?
Private loan from a family member. They funded the purchase, I am funding the rehab.
How did you add value to the deal?
This house needed a complete update and remodel.
What was the outcome?
TBD. So far, numbers look good to make a profit on my first deal!
Lessons learned? Challenges?
I'm doing the rehab myself, and it sucks. I'm learning a lot, but next project I will definitely hire out parts (if not all) of the work.
