Theres money to be made in the ghetto too!

 During an online auction on auction.com, my partner was bidding on some properties we were interested in.  Unfortunately, we didn't get any of the properties that we wanted.

However, during the auction, my partner got what he described as "click happy" and was the high bidder on a property that we had no interest in.  Not only did we have no interest in it, we didn't drive it, or see a picture of it.  But for $26,500, it was too cheap for my partner to resist.

The property was a 4-plex in one of the roughest neighborhoods in town.  When we sent our assistant to photograph it he was too scared to get out of the truck.

Eventually, he went to the property with another person to keep him safe to rekey it and get interior pictures.  

We found that the property came complete with an abandoned truck

The property certainly wasn't the prettiest property around, but it wasn't that bad.  All it really needed was a trashout, and some cosmetic repairs, and it would be ready to be back to its full income producing glory.

We got a little lazy on this property, and listed it immediately on the MLS as is, with the truck and trash.  Within in a few days, we got an offer for $47,000 which we accepted, and closed a a week later.

Acquisition Date: May 2012

Disposition Date: June 2012

Acquisition Source: Auction.com

Expenses

Acquisition: $27392.69 including closing costs

Rehab: $0.00

Utilities and Insurance: $0.00

Sale Price:

$47,000

Closing Costs and Commission: $3598.47

Net Profit $16,010

Considering the low acquisition cost, the low amount of work and effort expended ( a rekey), short hold time, high profit margin, and the fact that it was purchased on accident, this property was, unexpectedly, one of the juiciest deals that we've done.