Moldy Foreclosure Flip

[Cristina Mineo]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $225,000
Cash invested: $101,000
Sale price: $402,000

Purchased a foreclosure, opened up and updated kitchen, changed layout of master bathroom, fixed up bathrooms, refinished floors and sold property in 3 months.

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

This home had been sitting on the market for a year. There was mold growing on the walls because ATL is very humid and no one had been in the home. It smelled awful but I know the structure was good. It was labeled as a 2:2 but we changed the upstairs area into a master suite and sold it as a 3:2.

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

My agent was showing it to a friend of mine. My friend wasn't interested in doing a long distance flip so I took it.

How did you add value to the deal?

1. Opened up the kitchen lay out and upgraded the kitchen.
2. Added a closet in the upstairs area in order to call it a master suite. We also changed the layout of the master bathroom to update it.
3. refinished floors, fresh paint, new kitchen cabinets, new shower, new tub, new tile work, new washer and dryer, reworked the layout.

What was the outcome?

invested $326K and sold for $402K

Lessons learned? Challenges?

1. Doing a rehab for a buy & hold is VERY different from doing a flip.
2. There is a constant balancing act between design and budget.
3. There are always ways to make a space look modern an updated even on a tight budget
4. Amazon, Wayfair and Ikea are your allies.

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

Jonathan Rich from JRich Atlanta is my agent!