MLS listing in unfamiliar area

[Kelly Johnson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $82,000
Cash invested: $82,000

3/2 small home in a desirable area that went up for online auction as a foreclosure.

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

I had sold a home across the street a year ago and knew this home fit the same description and would likely have a much larger ARV compared to purchase price. It was going to leave me a lot of room for error on my first fix and flip.

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

Advertised on an MLS that is not common in the area so the only people who really knew about it were a few investors that were somewhat familiar with the area. No negotiation, just available at time of online auction and knew the comps beforehand.

How did you finance this deal?

HELOC on my own residence

How did you add value to the deal?

Remodeled primary bathroom with all tile shower, replaced toilets, redid all flooring, painted interior and exterior, all new kitchen cabinets.

What was the outcome?

Knew someone who wanted to buy it but couldn't just yet, rented it to him for a year and will close in just a few weeks.

Lessons learned? Challenges?

My sales price may have been a little low since I didn't have it available on the open market to invite competition. However, I was able to lower capital gains taxes and cover all expenses for holding it for the year and knew the tenant has a vested interest in keeping the property up.

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

no