Once in a lifetime deal...the kind you hear about on TV

[Michael Leung]

So my partners are into your third year of flipping houses. We did 12 homes last year and have done very well for ourselfs in a very competitive market, Tucson AZ. We focus almost entirely on buying at trustee sales, rehabbing the house and flipping them. So last month...right before Christmas, there was house going to auction that openned at $21k. I check the previous MLS listings and go drive the house. I discover that the house was completely updated and sold the year before by a flipping competitor. The house was is great shape and I comped it at $165k.

So the day the house is going to auction, Im feeling lazy and was looking for any excuse not to go.  I figured with the low opening price, that everyone will be there and a bidding war was going to ensue. 

I when I showed up at the auction, I was surprised to see that it was only me and the auctioneer there.  I was shocked when the auctioneered told me that the house was released by the trustee for sale.  I was completely flabbergasted that there was no reserve by the trustee and that I brought the house for $1 over opening....$21,001. 

A month later, with just cleanup and a little paint...we sold the house for $145k cash.