Full remodel turned into quick profit flip

[Benjamin Riehle]

Purchased a fully gut remodel from a local wholesaler here in Tucson, Az 2 weeks ago for $105,000. Our plan was to spend $100-$115k remodeling this property and then list it for sale. Comps in the area were in the $285-$305k range for a fully remodeled home. 

Four weeks ago we dropped the dumpster to begin demo of the property and one of my sales agents stopped by to check out the project before work began. He came back to me and said he believed we could list the property on the MLS and exit with a decent profit without doing any work. We placed the remodel on hold and decided to list the property as-is for two weeks to see if we could attract a buyer.

Within 3 days we had multiple offers above our $140,000 asking price. We accepted an offer on day two with a 7 day inspection period. On day 6 of the inspection the buyer backed out. We relisted the property and had a buyer offer $135,000 with a two day inspection period and ability to close in 7 days. We accepted this offer and 7 days later successfully closed on the sale. 

Sometimes it is better to take the quick strike and move on to the next deal. We have two new flips locked up and two more in the pipeline. 

Here is a photo of myself and the agent who decided we should list the property.