Craigslist added $40,000 to my net worth should've been $100,000

[Jeff Wallace]

I have had an "I buy Houses" post running in craigslist off and on for a few years. I originally expected and hoped to get a few calls from owners in some of the lower priced neighborhoods in the Spring, TX area, north of Houston.  To my surprise, I recently received a call from an owner of a home in the hottest segment of a competitive seller's market in an area I am actively buying rental properties.  The market for homes under $200,000 in The Woodlands, TX is very competitive and it is difficult to buy anything under full retail.

The good news - 

So, I get a call from an owner who recently purchased their neighbor's home with the intent to flip it for a profit... after a few days of work, they decided that they really aren't interested in the project.  We negotiated the sale at $120,000.  another $10,000 in repairs and I have a house valued at $170,000 which I leased in about two days for $1,500/month.

The bad news - 

A few years ago, I got a call (from the same Craigslist ad) from a home owner (again in The Woodlands).  His house needed completely updated (new kitchen, baths,floors, and paint), but was in decent shape.  I negotiated him down to $95,000.... but wanted to buy at $90,000 (I thought I would potentially be able to sell it for about $135,000-$140,000).  At the time, I wasn't in a position to buy the property as a buy and hold and intended to flip it. We weren't able to make the deal work and he completed the remodel himself.  While he was working on the property, the market made a MAJOR shift and he was able to sell it for about $165,000.

I only received TWO total calls from the Craigslist ad... (It hasn't always been active, because I haven't been diligent keeping it current), but after this last purchase, I plan to click "refresh" every 48 hours.  For the amount of money I spent on this marketing, (ZERO) I would say it has paid off nicely.

Not a bad way to get started .... it may not pay off consistently, but when it does pay off, it's like a Christmas gift