This was a foreclosure that was purchased off of Auction.com. I partnered with another investor to purchase and flip this property. We estimated $20k-$25k in rehab costs with an ARV of $140k. Actual rehab costs ended up being $35k. This was done intentionally as it allowed us to reach an ARV of $160k. We accepted an offer of $157.5k and paid $3k towards the buyers closing costs. In total, we walked away with ~$36k profit. Best of all, I had ZERO money in this deal. Partnerships are great!

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

While I don't primarily focus on flipping, this property was hard to pass up. Almost all of the work that needed done was cosmetic, although there was a lot of cosmetic work. I was able to partner with my dad and a friend of mine who is also an investor. It was fun getting to work together on something that wasn't a long term property.

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

This property was purchased off of auction.com with no negotiations. We had bid on this property during two previous auctions but did not meet the reserve requirements. We had decided that this was the last week we were going to bid and we ended up winning the auction.

How did you finance this deal?

This deal was purchased and rehabbed using all cash, which provided by a private lender. Typically, we provide private lenders with an interest rate that is paid out when the property sells. However, my dad was the private lender for this property and provided him with an equity cut of the sale.

How did you add value to the deal?

We made several improvements to the property to improve the ARV. New flooring throughout, new appliances, fresh paint, new/refinished drywall, new bathroom vanities, new interior doors, new garage door, new ridge vent, painted kitchen cabinets.

What was the outcome?

We were able to sell the property for $157,500. We paid $3000 towards the buyers closing costs. Net profit was just under $152,000.

Lessons learned? Challenges?

I underestimated the amount of time it would take to complete the rehab on the property. We did end up putting more money into the property than we had initially planned, which extended the rehab time and cost. However, we also increased our ARV by $15,000 with these added improvements and time.

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

I am a real estate agent and was able to provide us with comps and the opportunity to see the property before it was auctioned. We primarily work with Barrister Title in Mansfield, OH and have been very happy with their services. They always do a great job getting everything together for closing and have working with us when we were on a short timeline.