Short Sale Purchase, Rehab and Flip

[Robert Adams]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $168,000
Cash invested: $30,000
Sale price: $242,000

this was a short sale purchase. Appreciated while we were in escrow for 6 months. further appreciation while we owned it. Then remodeled and sold

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

bought it below value via short sale, rehabbed and gained value via appreciation

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

short sale on MLS. Another client back out so we bought it

How did you finance this deal?

traditional financing

How did you add value to the deal?

bought below value, rehabbed, and appreciated for 10 months between the time it was in escrow with the short sale and us rehabbing it.

What was the outcome?

we sold for a profit

Lessons learned? Challenges?

We had it in contract w an fha buyer. The fha appraisal came in $20k below contract price and stuck w the property for 6 mo. We had to cancel the deal and relist without any fha buyers being considered. Luckily we were able to find a cash buyer and sold it for $2k higher than the original fha buyer.