Flip in the "Nick of Time"

[Chad Shultz]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $191,100
Cash invested: $40,500
Sale price: $305,000

Purchased property via county foreclosure auction. After settlement, property sat about 45 days before we could start. During the renovation, this property survived, without any damage, the first of two 2022 Florida hurricanes. We completed the project and after about a month on the market, we got it under contract. Property successfully sold to another investor as a rental, turning about $74k in profit. About a month or so later, the second hurricane struck and flooded entire neighborhood.

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

I often purchase foreclosures and love working with block homes as they are more desirable in Florida because of weather. This was a large footprint in a desirable neighborhood.

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

County foreclosure list. There is no negotiation, just competition bidding.

How did you finance this deal?

I used existing business funds for the entire project. No hard money or private lending.

How did you add value to the deal?

We conducted a "walls in" full renovation and small reconfiguration.

What was the outcome?

Sold in short order, right at the end of the market high, for a good profit of about $74k.

Lessons learned? Challenges?

Finding good contractors, workers, is a continuing challenge, so I continue to be more of a "hands-on" flip investor. I turn a better project and am able to generally sell my properties quicker than most because of my better quality overall.