Investment Info:
Single-family residence fix & flip investment in Eddyville.
Purchase price: $85,000
Sale price: $154,000
This house is a single family home located in a lake home community subdivision.
What made you interested in investing in this type of deal?
I was interested in this deal because it has a high potential of out of town buyers. It is located in a neighborhood that consists of mostly out of town buyers as a second home. This eliminates some risk of only our local buyers in our small community and increases our chance of selling at market price or above.
How did you find this deal and how did you negotiate it?
My friend, Alica Martin, sent me pictures of the home. She said that she never sees the owners in the neighborhood. I found out their information and sent them a letter in the mail letting them know I would buy their property as is. This was perfect timing for them. I told them what I wanted to pay for the deal. It was much lower than they wanted to sell for. However, I learned that they had a lot next to it that came with the property so I was willing to spend the extra to purchase the propert
How did you finance this deal?
My mom used the equity in her home to buy the house and I used a heloc for the minimum rehab costs.
How did you add value to the deal?
We added another bathroom, making a master suite.
What was the outcome?
We sold the property in three days to an out of town buyer and my mom and I both profited a true $18,000 each.
Lessons learned? Challenges?
Our challenge was getting our contractors to move from project to project. We have a shortage in our town and most were on a long wait list. This project was actually extremely easy but it took so long because our other project was taking longer than expected.
