Investment Info:
Single-family residence fix & flip investment.
Purchase price: $141,000
Cash invested: $100,000
Sale price: $425,000
Bought this home as our primary residence where we lived in and renovated for 3 years as well as built our construction company. We were young and had minimal market education but knew we would not stay in this home forever. we knew it would be a vehicle to get us to where we wanted to be living. We did every ounce of work ourselves with the help of friends and family, we created a diamond level home in an OK neighborhood. The home was gutted without a single original pipe or wire left.
What made you interested in investing in this type of deal?
Construction experience and little to no money in the bank.
How did you find this deal and how did you negotiate it?
We looked for what we could afford. we only pre-approved for $150,000 at the time. We offered $150k and asked for 6% seller concession and they took the deal. SCORE!
How did you finance this deal?
FHA Loan.
How did you add value to the deal?
Complete gut renovation to diamond level quality home.
What was the outcome?
Total profits over $200K
Lessons learned? Challenges?
Do it faster next time! Challenges were living in construction for 3 years was quite stressful, but made our marriage stronger for surviving it.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Our trusted friend who brokered the buying and selling of the deal for us. Danny Moore of ReMax Long Island.
