First Foreclosure.. Sight Unseen, Flooded Basement

[Ross Cornwell]

Investment Info:

Single-family residence fix & flip investment in Rixeyville.

Purchase price: $124,000
Cash invested: $50,000
Sale price: $214,000

Sight unseen foreclosure, tons of issues

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

We bought this through an online auction at Hubzu.

How did you finance this deal?

Hard Money Lender

Lessons learned? Challenges?

This was a challenge because we had to make purchase sight unseen. We closed on this property on a Monday afternoon, when we started demo Tuesday we ran into a foot of water in the finished basement. Everything had to be gutted and remediated. This was in a lower income area and we had some issues selling it. We ended up refinancing the property and selling as a rent to own. This has been a learning experience working with a bank to finance the deal and being a landlord.