I had a request a few weeks ago to post some pictures of our recent fix and flip acquisitions. We bought a fix and flip on October 11th and October 25th. Both of these houses are in need of some work as is almost every flip we buy and one of them needs a lot of work! To give you an idea of how we get these deals, I have made three offers on potential fix and flips or rental properties this week. I think I may get one of the flips and will find out tonight as it is a multiple offer situation. I was countered on the rental offer I made and we probably won’t get together on price on that one, but you never know. The other offer we made on a flip we have had no response on at all.
Here is more information on my long-term rental strategy.
Fix and flip before and after pictures
This home I wrote about here in my fix and flip case study and was a REO. Our contractors have been busy working away on it and we ran into a few surprises, but nothing major. I thought we could re-finish the hardwood that was under the laminate, but the home had the garage converted into living space and the hardwood stops in the middle of the living room. We are just going to install new carpet now since it would look funny to and be expensive to try to match up the hardwood. This home also had structural problems in the living room and kitchen. Someone had previously taken out a support wall without putting in a header. This means the middle of the home did not have proper support and the living room ceiling actually dropped 2 inches; drywall, trusses and all! Our contractor tried to save the trusses but ended up having to rebuild them. The good news is the home now has vaulted ceilings! Here are a few pictures of when we bought it and I will take some more when it is all done. We bought this one for $76,500 and I hope to sell it for $175,000, but it needs a lot of repairs!
Fix and flip before and after pictures property 2
The second fix and flip we bought is a ranch home built in the 1970’s with about 1000 square feet and no basement. The home is in Fort Collins and we bought it for $105,000 which is amazing for anything in Fort Collins. The reason it was so cheap is it is in one of the lowest average priced areas in Fort Collins and it needed some work. The home had some foundation issues which the previous owners spent $16,000 to repair, but there was also water in the crawl space. The sellers and their agent said they had no idea where the water was coming from and that scared a lot of people. I made an offer and had my contractor check it out and it turns out the backyard slopes into the crawl space and we just need to fix the grading. This home should be worth around $160,000 when repaired and it won’t take much to fix it up. Paint, carpet and some minor cosmetic repairs as well as a roof are required.
A completed Fix and Flip
Here are some pictures of a fix and flip we currently have under contract. This one we bought for $75,000 as a short sale and have it under contract for $130,000. The photos below show the completed work.
Below are a few pictures of it before the flip. Unfortunately I didn’t take any before pics and these are what was on MLS. It shows how much pictures and a clean house can make a home look different. We did not have to do anything in the kitchen except install appliances.
We have two other fix and flip opportunities under contract as short sales and we are waiting to see if the bank will approve our offers or not. We heard our offer on the first one was within the investor and bank guidelines, but do not have written approval. The investor is the entity that holds mortgage insurance on the property and has to approve the short sale as well as the bank. Here is an article with much more information on short sales. We also have another fix and flip that was under contract, but the contract fell through last week and we have another one being repaired still. For more information on how to buy homes like these below market value check out this article.