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Updated over 6 years ago on . Most recent reply

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Tori Anderson
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Help me understand this flip? Buy/sell margin was very slim

Tori Anderson
Posted

I'm looking for my first flip, and ran across a neighborhood I like with a foreclosure scheduled for February. Using MLS, I scouted other homes on same street. I ran across this one and can't determine whether it was or was not a flip. The buy/sell margin was very thin AND according to realtor's remarks included full renovation. The MLS says the owner had an unexpected relocation, which may have been true - because the the time it was owned was 6 months. On the other hand, it was purchased as a foreclosure

Bought as a foreclosure for $205K in February 2018.  

Sold for $219,900 in August 2018.

Appears to have been professionally staged

New paint, carpet & vinyl plank flooring.

Granite counter tops which are not at all the norm for the neighborhood.  Seems these must have been in the house when purchased last.

White cabinets - golden oak being the neighborhood standard

New stainless steel kitchen appliances

High-end backsplash tile

So - I'd like some input/opinions from experienced investors.  What's your gut feeling? Flip or unexpected move?

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Aaron K.
  • Specialist
  • Riverside, CA
3,802
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Aaron K.
  • Specialist
  • Riverside, CA
Replied

Occam's razor the simplest solution is the one they told you which is an unexpected move.  It is possible they were planning on a live in flip though

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