Flooded Fix and Flip - South Daytona

[Chad Shultz]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $154,431
Cash invested: $122,578
Sale price: $309,100

Hurricane flooded fix and flip. This property was a foreclosure auction purchase, so minimal information was known. Turns out, the previous owner did take many steps to mitigate the moisture damage and the home was very dry and mold free when we acquired it. After months of reassemble and some customization work, the property sold for a decent profit.

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

This was a clean foreclosure property, which is usually difficult to find. The basic demo was complete and the property was ready for reassembly when we bought it, leaving fewer surprises.

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

Found this property through our local online foreclosure auction site.

How did you finance this deal?

We used $100k of private money and the rest was personal cash.

How did you add value to the deal?

We put the property completely back together, making everything brand new overall. Basically, it was a 1980s block shell with a 2024 home inside, when we were finished.

What was the outcome?

While there were many "Na-sayers", we sold the property above list price and well above what others thought it might sell for.

Lessons learned? Challenges?

This property flooded again, about 20 days after we closed on the sale. This was the first property we carried flood insurance on, during our project. Be careful with flood zone properties. When doing them, it is best to be in and out as quickly as possible and preferrable during the storm "off-season".

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

I am a licensed real estate agent as well, so I handle my own properties. I also work specifically with investors only in the real estate arena.