Diary of my First Flip in Cleveland, Ohio

[Zoran M.]

I will update this page in conjunction with a recently launched blog, www.thatflippingcouple.com.

This thread will include more gorey details than the blog, largely for the sake of input from the BP community.

I am located in the Cleveland, Ohio market. Specifically, I am flipping a property in Cleveland Heights, which is known for homes like the two pictured below. Diversity, to say the least!

Day 1 - Under Contract, Finally.

We began our search for a suitable fix-and-flip property in the eastern suburbs of Cleveland in early January after securing the necessary funds from an investor partner (50/50 profit split). While I thought the hardest part of flipping would be securing the necessary capital, the last three months have proved that actually acquiring a property in need of rehab is not an easy task. Our offers were attractive - all cash, immediate close and no contingencies. Who could compete with that? Well, apparently lots of investors can, as evidenced by the 5+ offer situations I found myself in rather frequently.

After touring foreclosures for quite some time, I came across an estate sale. It was still occupied by the daughters of the mother who recently passed. They apparently weren't too keen on having buyers trample through the house, as evidenced by the the five or six showings they turned down during that four day period.Thanks to the persistence of my Realtor, however,we were able to schedule a showing the fifth day it was on the market.

I put in an offer - 17% below list price - the very next morning. As part of my offer, I wrote the family a letter expressing our condolences and sharing our own story with them. It worked. After some back and forth about the price and the close date (they needed to find a new home/apartment), we had a deal. I signed the paperwork March 1st.

We close April 13th. I have my inspector coming in next Monday, along with two contractors who will be quoting out the job.

I'll post all of the nitty-gritty cost estimates at that time. Without further ado, here it is:

3 beds, 1.5 baths, 1,500 sq. ft. (not including finished 3rd floor).