While we were in the process of fixing up our house and that of our tenant, we decided to buy another house to flip. In 2001, we went halves with another investor, and bought a townhome (which was a HUD foreclosure). It needed a lot of work! It was so bad, that my husband looked at the home, and asked me point blank what in the world I was thinking! Now, at that time, we only purchased the home for $15K, and then had another almost $20K to put into it! We had a contractor at the time that owed us money, and he was doing the work for less than $7.00 per hour, and the balance of the hourly wage that we were to pay him, was to repay his debt. We had to add all new windows, new roof, paint, flooring, kitchen, and enlarge the almost non-existent closet size bathroom. Now, if you do the math, you will find that we personally spent only @ $17,500 on the total project. We then sold the home for $60,000 @ 6 months later, and made our $17,500 back, and also $10K besides! Now, my husband was excited!