Investment Info:
Other fix & flip investment in Cascade.
Purchase price: $1,800
Cash invested: $1,500
Sale price: $7,600
Bought 2 foreclosed lots from the hudhomestore.com in 2019 for $1800, total. I had a pipe dream that I'd possibly use them for a new build once I became a more seasoned investor.
The lots were 2600 sq. ft each situated between 2 home with an alley on one side and street on the other.
What made you interested in investing in this type of deal?
I literally only bought the lots because they were extremely cheap and I had $1800 of disposable cash to deploy.
How did you find this deal and how did you negotiate it?
Hudhomestore.com (bid process)
How did you finance this deal?
Cash on hand
How did you add value to the deal?
Lawn care in the summer was about $200/year for 3 years.
What was the outcome?
Sold to the city for $7600.
Lessons learned? Challenges?
The city contacted me to buy. They initially offered $4K. I came back with $7600. I knew the city was purchasing lots for playgrounds and mix used areas. I made a profit but in hindsight, I really should've held out for at least double the price: $15K. Especially since I wasn't hurting for cash.
I'm a buy and hold investor so this was my first time selling property of any kind.
I wasn't intimidated by the city or imminent domain; I just didn't see anyone else buying the lots.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Negotiated with city directly.
