First Flip

[Sam Jackson]

I'm ready to get starting flipping houses, and I think it's perfect timing. I'm located in the Tampa Bay Area and we're ranked #4 in the nation for vacant foreclosures. I don't know what to make of that but I think it's a good think. On to my point. I have a deal that i've spotted today on Zilliow. So I'm wondering what the BP community thinks about it?

Single Family House
$119,000
3 Bed 2 Bath
SF: 1,900
LS: 9,000
Short Sale, Active With Contract, Handy Man Special ( HOUSE NEEDS WORK )
Days listed 106

Comps within 90 days - 11 houses Sold
Lowest $170,000 ok house no upgrades
Highest $235,000 with upgraded

Now back to my question. With just those numbers. It looks like a pretty good deal to me. I just don't know what to make of the ( SHORT SALE & ACTIVE WITH CONTRACT ). Will this deal be to much of a hassle and headache?

[Lisa DuFaux]

Hi Sam, I'm also in the Tampa Bay area and have been doing rehab flips for quite a while. A couple thoughts...I agree there are good opportunities in this market. On the specific listing you reference, there is a requirement for Realtors to put the "Active with contract" language in the listing if that is the situation. What it means is the owner of the house has accepted an offer and it is now in the hands of their lender to decide if they will accept the price. This process can take a really long time and if they do accept it then you've waited all that time and still have no deal. In other words, I wouldn't focus on just this one and stop searching for others. Also, I wouldn't trust Zillow's valuations without confirming from more reliable sources. I am a licensed agent so I do my own searches on MLS but if you aren't licensed, I would suggest trying to find an agent who will work with you to provide information. You can also search the county's property appraiser site for recent sales to confirm. Best wishes for your first flip!