BRRRR turned to Flip due to high interest rates

[Mike Conner]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $157,000
Cash invested: $35,000
Sale price: $255,000

This was a purchase at the foreclosure auctions. Winning bid was $157,100 with all the fees total was $160k. Took a little longer to rehab than expected replacing cabinet doors is more difficult and expensive than original anticipated. Never knew someone could put so many nails/tacks in walls, there were probably 400+ removed. Performed a mostly cosmetic rehab with minor structural.

What made you interested in investing in this type of deal?

I've been pursuing bidding at the foreclosure auctions as they are not as much work as finding other off market properties. This was my first successful bid after many. I believe people have been overpaying for auction properties sometimes close to market value. I like these b/c it's in my wheel house of skills.

How did you find this deal and how did you negotiate it?

County auction foreclosure. Researched title myself, viewed property from the windows and bid based on what I thought it was worth with repairs.

How did you finance this deal?

Cash

How did you add value to the deal?

Replaced roof/french doors, all plumbing fixtures, vanities, mirrors, electrical outlets/switches/fixtures, fixed garage door, painted, replaced all door hardware, provided new cabinet doors as cabinets were solid wood, new appliances, new front columns.

What was the outcome?

Currently under contract after 6 days at $255k

Lessons learned? Challenges?

Refinishing cabinet doors is very time consuming, there is nuance to how you measure replacement doors, and it's better to just replace the whole cabinet as opposed to the doors only. Also I couldn't find anyone that sells already finished replacement doors at reasonable prices. Getting the smell out of a house can be difficult, needed to pressure wash garage concrete, professionally clean interior tile twice, paint walls, clean AC ducts, and finally run an Ozone maker about 4 times.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, but choosing to get my own license to reduce commissions next go round.

[Gina Stern]

I was interested in the fact that you researched the title yourself as there are many services offering title reports that experts do for you at a relatively cheap fee. Do you only keep to a certain farm area when bidding in Florida? You did a great rehab on this flip though!

[Marc Stevenson]

@Mike Conner  Great looking property!  Congrats!

[Tyler Solomon]

Great looking property! Who was the agent you worked with on this?

[Mike Conner]

@Gina Stern I really like propertyonion and have considered using your title reports, which are priced better than most. I typically check to see if the foreclosure is worth considering and if it is then I do my own title research on it, which is normally doesn't take long. Sometimes the official records contain some confusing documents and I will pay for a title report if there is any doubt. Most foreclosures are pretty straight forward. I only bid in 3 counties in FL. The main issue is the qty of houses I review and the costs for title reports on each property that I'm not successful on would add up. 

@Marc Stevenson Thanks!

@Tyler Solomon on the buy side of course there is no agent, just the County. On the sell side I used Jason Picht (Who is a realtor/broker and Investor)

[Gina Stern]

I understand your predicament although title reports are geared toward Foreclosure Investors and sometimes cheap can be expensive if you miss something doing your own title research, maybe it would be worth paying for a title report if it is a property that you are really considering?  These reports have saved some big mistakes! Good luck though!