Updated almost 4 years ago on . Most recent reply
A flip story where the house wasnt fixed up .
#2 Contractors Contributor
- Severna Park, MD
A flipper buddy of mine bought a house on Auction.com . Funny part was he looked at the wrong house . The road signs were wrong . By the time he realized it it was too late . Now the house had good bones , and thats about all . The lawn was overgrown , 2 junk cars , an old camper ( they had to cut it up ) . Inside was a hoarder house , the renter lived there with no electric and water for 3 years . The entire house was piled 4 ft high of clothes and stuff . Basement has 6 inches of water . I first saw it an laughed my A$$ off . He and his brother partnered on this deal . They have a 5 by 8 trailer and between cleaning the yard and hauling the trash they made 87 trips to the landfill and almost 3 months of part time and full time work . Now they had 170K in the house it needed EVERYTHING , and I mean everything , but the bones were good . The ARV of this house would have been $310K on a great day , BUT I gave it the once over and figured $125 to $160K to bring it to builder grade rehab . This deal wouldnt work any way you penciled out a rehab . SO ......................................................................... I told them to clean it up and HGTV it , let someone else have the fun , auction it off , pick a reserve you can live with , it couldnt hurt to try . Well I got a phone call yesterday , it sold at auction for $255,000 . They were happy as hell , They figured they would clear about $65K at the end . AND the buyers paid the auction house in FULL .
He finally listened to someone else , he usually goes over the top on a rehab and clears less than what he made on this deal . He paid no contractors . Sometimes the easy way out is the best
Most Popular Reply
Man, this is a great post! This actually happens from time to time. I got a deal earlier this year that I could have just sold for about a 15-20k profit without doing anything, but I chose to rehab it, as a flip I will probably get around 70k profit but its definitely the more stressful option!
- Taylor Dasch
- [email protected]
- 254-718-4249
