Just won my FIRST Auction!

[Pavlos Kasselouris]

I'm so excited a new chapter just opened in my REI career! This was always in my mind, and after 3 months of going after auctions, I landed my first acquisition! For the record I have 3 rentals out of which one was a rehab.

My goal is to flip it, and go for the next one! Before I scale this venture I wanted to have one completed project from start to finish, and then seek financing for more rehabs. This one is a joint venture with my partner and we are self funding the deal.

I will post updates here and ask for advice at the same time.

Acquisition cost is $75K + fees of about $1700.

My initial calculated ARV was around 125K, but after we won the auction I did more detailed CMA that came 133K. So listing price should be around 135K.

Its a 3/2/2 with 1416 sqft in Florida, 30min close to the Orlando area. 

I will have the certificate of title in about ten days in order to gain access to the property so here are the initial photos and a pick from the window...

[Pavlos Kasselouris]

I'm happy to report that project is finally OVER, tenant in place and after refi is finished I project over 18% CoC return! Now time to figure how I can do this and leverage OPM...

Lessons learned:

1. It is extremely difficult to manage effectively a rehab from 4 hours drive. From getting bids, to buying materials, from managing time to perform quality control...everything was a challenge...BUT it CAN be done!

2. Order the kitchen cabinets first...

3. Auctioned properties are given in a discount for a good reason...

4. Not so happy with the performance of the contractor on scheduling. This is what you get when you hire a self-performing "Jack of all trades" that has only two helpers... but at least I knew from the start that since this was first one, it would be kind of slow.

5. Rental market is crazy, I had 20 inquiries before even I was done with everything, just with a craigslist ad, and zillow listing!

6. Put in my formula more profit, and more repair estimates.

7. Have contractors bid with them removing their debris, unless I can bring in a good price a 60yd dumpster for the whole project!