Investment Info:
Condo fix & flip investment.
Purchase price: $229,100
Sale price: $352,000
1 bedroom, 1 bath condo with a bonus living space adjacent to the living room. Acquired at foreclosure auction, this property was occupied and required working with the resident to avoid the eviction process and find her new housing and a fresh start. Cosmetic rehab included new carpet, fixtures, refacing kitchen cabinets, and painting.
What made you interested in investing in this type of deal?
I decided to target condos in foreclosure auctions as 'starter' flips because they were a lower price point, the market at the time was so hot the holding cost and time were not expected to be long, and the big maintenance items are taken care of by the HOA.
How did you find this deal and how did you negotiate it?
Online foreclosure auction
How did you finance this deal?
Private money
How did you add value to the deal?
Fresh paint, carpet and fixtures went a long way here to add value to the property.
This property was occupied, so getting the occupant to agree to move with their belongings also reduced the holding cost.
What was the outcome?
The market was such that this condo sold the first weekend in a bidding war.
Lessons learned? Challenges?
I was most proud that I was able to avoid the eviction process and created a win-win situation with the former owner, who was in a tough financial situation with nowhere to go. I had researched the foreclosure auction process enough to help the owner apply for the overage from the auction, and helped line up a moving company and housing for the owner and their pets. It was not an easy process to navigate, but felt like the more ethical route to try than to go immediately to the eviction process.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I was the owner and real estate agent on this deal
