I invest in long-term rental properties and that is what this blog focuses on, but I also complete many fix and flips. Every month I am going to write an article that discusses the earlier months fix and flip activity. This article will discuss my fix and flip activity in February to give you an idea of what I am doing to find properties, fix them up and sell them.
Fix and flips purchased in February
I did not buy any fix and flips in February. I have tried to purchase as many fix and flips as I can, but no opportunities came up that I could get under contract. The last fix and flip that I bought was a country property that I bought in January. That house is being renovated and is a huge project! The house had to have a new well drilled among many other repairs.
Fix and flips put under contract in February
I did get a fix and flip under contract in February! The home is located in a nearby town and was purchased from the MLS. I tried to make an offer on the home when it first came up for sale, but someone else beat me to it! That doesn’t happen very often, but it was my fault because it took me a couple of days to view the property after it was listed.
The home then came back on the market and I made an offer within an hour of it coming back on the MLS. The seller countered me that same day (it was a fair market sale). The price was not where I needed to be so I countered back again. The seller countered me one last time and I accepted. I will give details on the price and potential profit once I buy the home.
Fix and flips sold in February
I sold one fix and flip in February. This home was purchased for $77,000 on 7/23/12. This home was bought before I took over the business from my father in September. We had a lot going on and the work was completed the end of October. We listed the home for $136,900 and we had a full price offer that same day! Unfortunately the contract fell through right away, because the buyers decided they didn’t want to buy a house. I was able to get another contract accepted on the home about three weeks later. That contract was for $130,000 and it took us until 2/26/14 to close! We ran into many delays on the closing process and the buyer was not too motivated to close, because they are using it as a college rental. Since it will be a college rental they won’t be able to rent it until May or June.
The buyer also asked for many repair items after the inspection which we negotiated on. We ended up putting in a radon mitigation system and doing many minor repairs. I think we spent a total of about $20,000 in repairs on the property. We spent about $13,000 on selling costs (interest, insurance, taxes, commission, title insurance, etc.) for a profit of around $20,000. I like to make much more on my fix and flips, but I will take a $20,000 profit.
Fix and flips listed in February and January
I bought a fix and flip in October that was listed on 1/27/13. This home also had a contract accepted on it right after it was listed that fell apart due to inspection concerns. The home had foundation issued that were corrected before we bought the home, but the buyers were not satisfied with the reports we had. We got it under contract again after the first contract fell through and it is set to close next week. We had to do about $3,500 in inspection work on this home as well. The biggest cost from the inspection was they found mold in the attic, which we had to remove. We bought the home for $105,000 and we listed it at $169,900. I’ll let you know all the details when it sells!
We listed another fix and flip in February at $189,900 that was purchased for $76,000 on 10/11/2013. This home is not under contract yet, but I hope to have an offer some in at any time. The home was not listed until 2/27/14, because we had some issues with our contractor. The work took way too long and I have decided not to give so much work at one time to one contractor. I may be priced a little high on this property and I will lower the price if we do not have an offer at the three-week mark. We had to put about $33,000 of work into this home. The details on the purchase can be found here.
Future fix and flip plans
I am continuing to make offers every week and look for deals. I made two offers today on new possibilities and I hope to get one of them. We continue to renovate two more fix and flips I will have more details on those properties next month.