So my first live in flip was a flop. Hubby and I both lost out on homes in the local economic turndown. Did my interest in real estate speculation fade? It did not…
Hubby and I knew an older couple that had inherited his mother’s house. I overheard them talking about it in a disparaging way. They didn’t want it; nor were they thrilled with having to deal with it. My radar was activated and I started asking questions.
It was a small, run down, 2 bedroom on a very large lot. It had been paid off years ago. So I made them an offer. Full price (which was $23,000), owner carry with no money down (I didn’t have any), 10% interest (that was the going rate then folks) with no payments for one year. Believe it or not they accepted!
There was one slight problem – I had no idea how to fund the fix up. There was another larger problem – about 6 feet tall in fact. I didn’t tell Hubby what I was up to until the deal was sealed. As expected, he was not happy and didn’t want any part of this. He even refused to watch the kids when I went over there to work. (Yeah, I know – why is it “babysitting” when a dad does it but “parenting” when a mom is involved? Anyway, he has come a long way since those days and would probably be embarrassed at this revelation.)
I decided to fund via a credit card cash advance offer for 0%. I figured I could sell before the promotion ran out. I know I bought a little paint; but it has been so long I don’t remember what else. I had no skills so it couldn’t have been much. I painted inside and out. Cleaned. Straightened up the yard. I think I stuck down some new linoleum and had some carpet installed. At one point I called my Hubby in for a consultation and he grudgingly went. But the kids sulked and whined every day.
Eventually I deemed it “ready” and placed an advertisement for “rent to own”. I found a young couple willing to pay $30,000. I leased the house to them with a $1500 deposit which I credited to their down payment if they bought. At the end of a year they qualified for a mortgage. I paid off the original owner and pocketed something like $5000 – which was a small fortune for us.
Hubby was impressed and hooked. We were flippers.
Copyright December 2018