I have procrastinated on posting my most recent fix-n-flip deals here on BP, so here it is. The first was a Bank of America foreclosure and listed on auction.com. I was succesful in my bidding with a purchase price of $218k.
The property had been vacant for over three years and had a major mold problem which prevented anyone from entering the property. I was finally able to get access after some back and forth between auction.com and the listing broker who was a pain to deal with. I utilized a hard money loan which was contingent on a walk through to scope the rehab effort. I utilized thumbtack and craigslist to find all my contractors since I wasn't a member of my local reia at that time, which is a great source. We closed Jun 15th 2015
It took roughly 60 days for the rehab to complete. The house went under contract in 10 days $60k under asking price which $379k. I put roughly $77k into the house which was about $25k over my initial budget for the rehab. After Realtor fees, loan payments, and rehab cost, I walked away with roughly $20k of profit in early October 2015.
Three weeks later I purchased a home in Birmingham, AL for $51k va5sh from a guy who had bought the home with his Ex-girlfriend 4 years ago and could not longer afford it. We closed Nov 10, 2015 and put close to $35k in rehab work and went under contract for full list price, $129k, in only two days on Jan 4th 2016! I do this part time with the 1st property being about 30 miles away from my home and the second being about 10 hours away. It hasn't been easy and stress free, but the experiences have been invaluable!
Words of advice
1) don't be afraid to move out on the right deal once you have done your analysis
2) If you don't have expertise in an area find others who do
3) Get multiple rehab quotes
4) know your market
5) Get your W9 upfront from your contractors
6) Continue to read, learn, and grow to be the best investor you can be!
