Auction Purchase & Value-Add Rental: 3965 Karl Rd Investment Success

[Arman Ahmed]

Investment Info:

Condo fix & flip investment in Syracuse.

Purchase price: $23,600
Cash invested: $30,000
Sale price: $48,500

3965 Karl Rd, Unit 100 – Quick Flip Success!

Purchased this condo for $23,600, made minor cosmetic updates, and sold it for $48,500. A great value-add opportunity in a solid rental area. This deal highlights the power of finding undervalued properties, making strategic improvements, and quickly turning a profit!

What made you interested in investing in this type of deal?

I was looking for an investment property with strong rental potential at a below-market price. Auctions provide an opportunity to acquire properties at a discount compared to traditional listings. 3965 Karl Rd stood out because of its location in a high-demand rental area, making it a great investment with potential for appreciation and steady cash flow.

How did you find this deal and how did you negotiate it?

I found this property through an online real estate auction platform. Since auctions don’t involve direct negotiations like traditional deals, I focused on setting a competitive yet profitable bid. I researched comparable sales, factored in potential repair costs, and established my max bid limit to ensure I didn’t overpay. I won the auction by strategically placing bids and ensuring I had funds ready for a quick close

How did you finance this deal?

I purchased the property in cash, which allowed me to close quickly without financing contingencies. This also helped me secure a better deal since cash buyers are more attractive in auction settings. Paying in cash also meant I could start renovations immediately, increasing my return on investment faster.

How did you add value to the deal?

Since the property was acquired below market value, I focused on value-add improvements to increase its rental income and long-term appreciation. I:
• Renovated key areas, including painting, flooring, and updating fixtures.
• Made necessary repairs to ensure the property met rental standards.
• Enhanced curb appeal to attract higher-paying tenants.
These improvements allowed me to increase the property’s rental potential and overall value.

What was the outcome?

After completing renovations, I was able to rent the property at a strong rate, generating positive cash flow. The upgrades also increased its market value, giving me flexibility to refinance or sell at a profit in the future.

Lessons learned? Challenges?

Challenges: Auctions come with risks, such as limited property access before bidding and the potential for unexpected repairs. Since I bought the property “as-is,” I had to be prepared for hidden issues.
• Lessons Learned:
• Always research the auction process and property history before bidding.
• Have a clear renovation budget in mind and expect the unexpected.
• Cash purchases can provide leverage in securing deals but require strong financial planning.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I primarily handled the purchase directly through the auction platform, but I worked with a contractor for renovations and a property manager to streamline the rental process. Both were key in maximizing my return on investment.