We Made 50,000+ on this Michigan flip

Ahhh, a 3,000+ sqft colonial in one of Metro Detroit's popular suburbs. Southfield is the name, flipping was the game. So I found this bank owned property on my local MLS, yes it was an MLS listing. Emphases on the MLS because sooo many investors THINK all they're interested in are off market properties. Oh contrare! It doesn't have to be off market to be a good deal, you just have  to know what your doing. The home was listed for 104,000, so initially my investor's and I went in right under 100,000. The bank rejected quickly. With the current market info and comp's we knew it was well worth full asking price. We offered 104,000 and they accepted. After all homes in the area were selling for 200,000+. The plan was to rehab and flip in 90days, but of course there were a few bumps in the road to success.  One obstacle was city inspections. Depending on rehab details, certain things must be approved by the city, and they may take a week to three weeks to come and inspect the work that has been done. This dilemma set us back almost a month.  Another time consumer was my investor's funds. As we all know time is money people, be sure to have your funds ready when doing a flip.  This dilemma set us back about 2mo's. Finally the rehab was complete and the property sold 15days after being listed. One thing I noticed with this flip was the rehab material costs. As an investor it is important to have good relationships with contractors as well as deals on materials. I noticed where DIY projects and creativity could have been used to save money and add value to the home. I also saw where my investor chose cheaper materials on flooring, which cut into the resale value. I would never encourage an investor to overspend on materials, ever! However when the value is there make the investment. All in all this was a great deal, even with the flip time lasting longer than we anticipated and material choices. My investor made over 50,000, spending 30,000 in rehab and incorporating selling costs. Not bad for a Michigan flip, not bad at all.

Malaka Green

"Your guide from listing to closing"

MI Real Estate