Investment Info:
Single-family residence fix & flip investment in Copperas Cove.
Purchase price: $80,000
Cash invested: $14,000
This is currently my Primary residence and I am living in it while fixing it up. I am Active Duty military and had not found the Biggerpockets podcast yet unfortunately otherwise I probably wouldve bought a Duplex and house hacked it. I purposely bought the cheapest house I could find in the nicest neighborhood knowing that I wanted to rent it out eventually. Just over a year later I am almost done renovating it and plan to rent it out so I can buy my next property.
What made you interested in investing in this type of deal?
My father was a contractor and I worked occasionally for him on a project so I learned how to do a fair amount of home renovations on my own. I knew my budget was going to be low because we aren't paid very much in the military so I decided that living in a fixer-upper was going to be my best bet. I wanted a place for my wife and I to live comfortably yet still be a good long term investment.
How did you find this deal and how did you negotiate it?
Hired a Real Estate Agent because it was my first home purchase and I had a very short and strict deadline. The home had some serious deficiencies so negotiating was intense but we ended up getting it for 9k lower than listing so it was an overall win considering we got it for 4k lower than appraisal.
How did you finance this deal?
VA Home Loan - 0% down payment (Needed to use all of my savings for repairs and new furniture)
How did you add value to the deal?
We were the first people to take interest in the home in over 4 months so the sellers were happy to work with us.
What was the outcome?
We're living comfortably and havent had any major issues so I'd say pretty darn good!
Its a 3/2, 1350 sqft, 2 car garage, on .21 acres and bought it for 80K flat in a 115-150k neighborhood. Had to replace the HVAC, Main Electrical Box, windows, Countertops, flooring, master bathroom remodel. Estimating being all in at $110k and renting long term. If I need to free up capital in the future I will easily be able to get $135k depending on how long long I own it and let it appreciate.
Lessons learned? Challenges?
Do research on the home buying process so it's less stressful. Find a GOOD real estate agent! Get pre-approved by a lender BEFORE evening contacting an agent. Do in depth research on the area, the individual neighborhoods, appreciation in the area, etc. Lastly be VERY thorough when youre walking through the home you want to buy. Bring a measuring tape and get to work! I wanted a sideyard big enough to store a large trailer and was about 14" off and now paying $50/mo for a storage unit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Agent: Lucas Brandt from Fortress Group Realty. He was such a great agent that I ended up getting my license and now I work for him!
Lender: Veterans United
Loan Officer: Danny Reyna
