Welcome to this houses episode on Flip or Flop, where we are gonna risk it all in hopes of making a couple bucks. If not, then I don't know what we'll do.
So, I will be realistic in saying that my target profit on my upcoming flip is $50k for about 60 days of work. I won't trick everyone by saying that I might end up owing money at the sale and then turn around into a $72,450 profit.
No, I have multiple exit strategies in line for this property.
Option 1: Rehab and Flip for profit to go onto the next project
Option 2: BRRRR
Option 3: Live in it during rehab and after rehab while renting out or selling my current home as the new one is an upgrade on land and neighborhood.
So, I'm sorry to disappoint anyone that has tuned in for the first ever possible FLOP but, with a plan, it is near impossible.
the Juicy Details:
Single Family Home, Foreclosed occupied . on hubzu.com (was bidding on the property for about 6 months now. Was the only bidder a majority of the time until recent when 1 other bidder decided to join the party but was only window shopping and probably scared off of the OCCUPIED status)
New London County CT built in the late 80's
checked the public records and found the owner of the home. Then found court records for the foreclosure to see where they are at in the process. Found the golden goose egg (Stipulated Agreement with a Marshall execution for 9/10). Saves me from lawyer fees. I also, can continue the eviction if the bank doesn't carry it out.
4 bed 3 bath 2400 sqft with over an acre of land
purchase around $205k ARV of $360-400k with an estimated reno cost of $50k
for being an REO Occupied property, there are no interior pictures so I was only able to see the one picture of the exterior of the home (luckily enough I live a mere 15 minutes away and can check the exterior and neighborhood better)
Connecticut has a crumbling foundation issue with many homes (crossing my fingers but also researched a little bit to make myself feel better)
How much reno will be needed? Did they ever update the kitchen and bathrooms? Are they gonna be vengeful against the bank by destroying the property?
STAY TUNED for what is to come
PS: I am looking to obtain some lending to get this deal done
@Craig Hansen sounds like a fun project.
2400 SF is a big house to rehab and flip in 60 days. I assume you have a crew coming in to do the work? What does your anticipated SOW look like? Being a late 80's home, one thing to pay attention to... roofs and HVAC will be at the end of their useful life if noone ever replaced them. Not sure if you plan to replace these items, but if they were never done, you most likely will have to.
CT (central though) was my last market and I did a couple colonials (not sure if yours is). One was a $70-75k reno the other was over $100k. Both were older homes but sold quickly afterwards.
Keep us posted with all the details!
I have the correct tradesmans but, it is difficult to understand the scope of work without gaining access to the inside of the property until the current residents are out.
As long as major work is not needed then I expect to be done within the 60 days. I would like to have the property ready before the holidays.
I would probably roll the dice on an 80s house in CT, even if the looks are a mess, the rest should be fixable/straight forward.
Getting it on the market before he holidays would be good. Slower than spring market, but people still buy all year long.