Foreclosed "Teardown" Turns Into HGTV Show House

[Shuff Mauldin]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $19,000
Cash invested: $19,000
Sale price: $40,000

This deal taught me the importance of knowing your numbers and your neighborhood. What started as a nerve-wracking courthouse auction turned into an $18.5k profit — and the house even made it onto HGTV’s Hometown.

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

This was a house in a great location. I remembered it in its prime and knew the lot alone was worth something, even if the house was beyond saving. I also lived just a block away at the time, so worst case, I had a cool "detached yard".

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

I first tried writing, but got no response. I shortly learned it was headed to foreclosure — it was starting at $11,000. With no way to tour the house, I based my numbers on the lot value and demo costs. I showed up at the courthouse with a max bid check of $23,500. The bidding started w/ small annoying bids. One guy even looked at me and asked, “Are you going to bid?” I gave him a look (the one he deserved). Finally, I said $19k. “Going once, twice, sold!” I went pale and almost puked.

How did you finance this deal?

cash

How did you add value to the deal?

Just cleaned up the lot which was a lot to do. The contractor and dumpster were my largest expense.

What was the outcome?

Purchase Price: $19,000
Holding Costs: ~$1,000ish
Cleanup: $500
Realtor Fee: $1,000
Total In: ~$21,500
Sale Price: $40,000
Net Profit: ~$18,500 in about 60 days
The new owners went all in on renovating it — and the house ended up being featured on HGTV’s Hometown with my friends Ben and Erin Napier (Season 5, Episode 9: Woodland Wonderland).

Lessons learned? Challenges?

Pay attention to foreclosure auctions in neighborhoods you truly know; that local knowledge is an edge.
Sometimes the best value-add isn’t swinging a hammer but recognizing overlooked potential and connecting it to the right buyer.
Here is a link to my walkthrough after purchase https://docs.google.com/videos/d/1VVxQdxttSveA73ojc1iCwcBC2GAYFdiuNvY8EqOSE0c/edit?usp=sharing
and here is a link to the episode. Great people & house: https://share.google/ys5rR49RJpi3QxX6j