Investment Info:
Single-family residence fix & flip investment in Akron.
Purchase price: $52,500
Cash invested: $6,000
Sale price: $95,000
My husband and I purchased this home in North Hill of Akron, Ohio. We originally planned to buy and hold the property but when inventory became very limited we decided to flip the home instead. We did all of our own labor, besides hiring a plumber for one repair. We invested a lot of time and elbow grease, but only $6,000. The most labor intense part of the project was repairing the original wood windows.
What made you interested in investing in this type of deal?
My husband orignally wanted to start a rental portfolio, but as we got into our first project we realized this house would be a better flip than a rental and the housing market was also in a place that offered a great profit on flipping.
How did you find this deal and how did you negotiate it?
We used a real estate agent and bout the home as a short sale.
How did you finance this deal?
We used a conventional mortgage loan to buy the house and a credit card for building materials.
How did you add value to the deal?
We did mostly cosmetic work to the house. New flooring, fresh paint colors, new plumbing and lighting fixtures, but preserved the original charm. We saved money by repairing the old wood windows instead of replacing them.
What was the outcome?
We had a fun time and made some money!
Lessons learned? Challenges?
We learned so many lessons during the process. We learned how to identify a good flip opportunity over a buy and hold opportunity.
We learned a lot of remodeling skills like laying sheet vinyl flooring.
