Flip closing at end of month

[Scott Neal]

A few months ago I sent out some yellow letters to a neighborhood I owned a rental in. I got a few calls, and met with someone who needed to sell. The husband had just died suddenly and the daughter was handling the sale. The house was in pretty bad shape, but very repairable. We bought the house for $110,000 with the intention to rehab and list for $195,000. The seller needed t close in 2 weeks, and my partner bailed in the middle of negotiations (and hasn't returned any of my phone calls for the last 2 1/2 months), so I had to pull in my loan officer and go in with me. We closed and started rehab immediately. About 5 weeks later the house was ready for market. We spent about $42,000 on the rehab. We put in new flooring (carpet, laminate and tile), new paint, new stainless steel appliances, some siding, a new roof, new fence, new toilets, new exterior doors, new light fixtures and handles, new blinds, and lots of deferred maintenance and functional repairs. Since I'm a real estate agent, I listed the property and received an offer for $5000 over asking price the first week. The appraisal was just completed and were supposed to close by the end of the month. After expenses, my partner and I will met about $25,000 between the 2 of us.