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Updated about 6 years ago, 11/18/2018
- Investor
- Santa Rosa, CA
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Cat Litter House: Flip # 653 and it could be the worst one yet. Look at the pics and you decide.
Some flips are easy...paint, carpet, clean, and list. Then there are the hard ones.
I've never posted a diary of a flip before. With over 600 flips under my belt I sometimes think that I've seen it all. Then I see something I haven't seen before. This time, It's so outrageous that I couldn't resist sharing. I'll share the visuals, but fortunately for you I can't share the smells. This is kind of a diary and kind of not...I bought it in January so you don't get the day-by-day play-by-play, but it's not done yet so this isn't old news either.
I came across this deal from a wholesaler who I met on BP (thanks yet again BP for making me money). He hadn't seen the house in person but he had heard it was in bad shape.
I sent my acquisitions guy down there to look at the house. When he came back he said, "that's the worst house I've ever seen." At first I thought "Come on, really? You've looked at over a thousand houses for me!" Ultimately, I took his word for it. We threw a number at the rehab and ARV and made an offer. It was accepted.
Here are the numbers:
ARV $400,000 (probably a little more, I hope)
Rehab $175,000 (probably a little less, I hope)
Since there were some unknowns I had to make a conservative offer. It would take a while to fix this place up, so I had to add some margin to cover the carrying costs.
My offer: $125,000.
Closing was about a month later. The seller agreed to move out and leave the key at the title company. On move-out day, I went down to the house to see it for myself for the first time. When I opened the front door, this is what I saw.
Ok, so now I knew that my acquisitions guy was right! We were in for it!
Have you ever seen anything like it? Wait, it gets worse. More to follow!