The 44112 Case Study – What I Learned From Running a Real Fix-and-Flip Analysis
A few days ago, I ran a full fix‑and‑flip underwriting analysis on a property in East Cleveland (Zip Code 44112). The property was listed at $19,000, completely gutted to the studs, with new heating vents already installed.
I pulled the data using Cuyahoga County records, PropWire, and Zillow. I verified the owner, checked the tax balance, found recent comps, and ran the full numbers.
Here's what I found:
The Numbers:
- *Purchase Price: $19,000
- *Rehab Estimate: $35,000
- *Holding Costs: $2,000
- *ARV (based on comps): $85,000
- *Net Profit: $23,080
- *ROI: 40.8%
The Key Insight:
The property was owned by an LLC, not an individual. That changed the negotiation dynamic completely. An LLC owner is less emotional and more business‑focused – which means a direct, professional approach works better than a sympathetic letter.
What I Learned:
- *The rehab estimate needs to be grounded in the actual condition (gutted = $30–$40k, not a light cosmetic flip)
- *The comps need to be recent and local – one outlier can throw off your entire ARV
- *Tax delinquencies add leverage – a $765 back‑tax balance gave the seller extra motivation
For those who underwrite deals regularly – what's a lesson you've learned the hard way when running numbers on a potential flip?