The fix and flip business did great in March! I bought a new fix and flip, sold a fix and flip, I got a fix and flip I am selling under contract and I was also able to get another a fix and flip purchase under contract in March. This is the second fix and flip update article; the first is right here.
For more information on investing in rental properties and fix and flips check out this article.
Fix and flip sales in March
I sold my first fix that I purchased solely by myself after taking over the business from my father. I purchased this home for $105,000 as a fair market sale and put about $14,000 in repairs into the home.
I sold the house for $165,000 on March 20; after closing costs, commissions and carrying costs I profited around $30,000 on this property.
Fix and flip sales under contract in March
The first fix and flip I bought since taking over from my father is under contract! I had the home listed at $189,900 for three weeks with many showings but no offers. I lowered the price to $177,900 and I received an offer on the home very quickly that I accepted. I had a huge spread on this home since I only paid about $76,000 for it, but it needed a lot of work. The bill from the contractor was about $33,000 and I give many more details in this article.
I listed another fix and flip in March that also went under contract. This home was purchased back in April of 2013 and we finally listed it last month. We had some delays with our contractor that caused this one to sit idle for months. We listed this home at $144,900 after buying it for $72,000 and putting about $15,000 of work into it. We had two offers right away and accepted one that fell apart two days later due to financing. It went back on the market and we had another offer that was accepted one day later.
New fix and flip purchased in March
I bought a new fix and flip in March as well. This home I purchased for $125,000 and I hope to sell it for $170,000 to $175,000. The home does not need a lot of work and has many updates including a newer furnace and water heater. However, I may have to put in a new kitchen and rework the bathroom. Here is a video of the new fix and flip.
This home was bought from the MLS as are most of my deals. The home was listed for $135,000 and went under contract right away with another buyer. The contract fell apart and I offered $120,000 immediately. The sellers countered at $125,000 and I accepted. For more information on how to purchase homes below market value check out this article.
New fix and flip purchase under contract in March
Over the weekend I was able to get another fix and flip under contract. This home will be closing in April and I feel is a great deal. The home was listed while I was in Mexico with my wife on vacation. When I came back from vacation, it was already under contract. The home came back on the market and I made an offer immediately. The offer was a little low and I was told they had another offer on the home. I raised my offer and removed my inspection contingency. The sellers accepted my counter and I will have more details next week.
Offers made in March
I made an offer Monday of this week and Friday of last week on great deals; we will see if anything happens on them. The houses were REO sales and priced very low so I know they will have multiple offers. I made offers well over asking price with no inspection contingency. I also made at least five more offers in March that I was either beat out on or that were rejected.
Things are going well with the fix and flips even with reduced inventory. There are very few REOs and short sales in the area right now. I am finding deals on estate sales and fair market sales that need a lot of work. I will have more updates next month with at least one new purchase, hopefully one sale and more properties under contract!