Investment Info:
Single-family residence fix & flip investment.
Purchase price: $82,000
Cash invested: $40,000
Sale price: $167,000
Purchased a foreclosed SFR. Rehabbed it over 3 years while living in it. Also house hacked; we had a renter for 2 out of the 3 years. That rent paid the mortgage + our half of the utilities.
What made you interested in investing in this type of deal?
We had no idea we were "investing" when we started this.
My best friend is a realtor, she convinced me we were in a place to buy a home. I was too cheap to buy something nice, so I started looking at foreclosures.
How did you find this deal and how did you negotiate it?
My realtor/friend took me to see this the day it came on the MLS, we put in an offer the next day. She knew this was going to be a bidding war because of the potential, it was listed at $80k so we offered $82. She was right, two other offers went in, but we got it.
How did you finance this deal?
Traditional mortgage. Put 20% down.
How did you add value to the deal?
This house was ~1700sqft and we were about ready to sell. My realtor (same friend that found us the place 3 years prior) ran the numbers and told us to finish the basement. We paid $5500 to have a small team finish the basement. This added space made ut a 2200sqft home and it made us about $11,000 more.
What was the outcome?
We lived for "free" for 2 years and made enough money to pay off most of my grad school debt. And we were hell bent on doing it again!.
Lessons learned? Challenges?
We learned that flipping and house hacking are all very viable ways to earn money.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Sydney Williamson : Nashville, TN (Elevation Homes - Realty and Renovation)
