Here is a video of my latest fix and flip purchase. I now have 8 fix and flips in inventory, and I think I have reached my limit for now. I do not have the contractors to be able to repair homes quickly enough to buy any more. I am very happy to have purchased this property and I think it will be a great fix and flip. This was a REO property that I did not think I was going to get.
How I was able to buy this fix and flip
This home was listed as a REO and priced well below market value. The home was listed for $96,900 and similar houses sell for $150,000 or more. There was an owner occupant period for this home, although it was not a HUD. Only owner occupant buyers could submit an offer for the first 8 days and after the first 8 days were up, investors could submit an offer. I sent in my offer assuming an owner occupant would get this property under contract. To my surprise no owner occupant offers were accepted, but the seller did receive multiple offers on the home. Even though the home was priced very well, it does need a lot of work, and I did not even see the interior of home when I made my offer. When I first went to view the house, the key was not in the lock box so I all I could do was look in the windows.
After hearing that there were multiple offers on this property I decided to increase my offer to $94,452. I always like to offer weird amounts just in case someone else decides to offer the same amount as me. If someone else was willing to pay $94,000 for the home, I figure an offer of $94,452 would get me the property. Since I was not offering full price, I figured I would not end up getting this house. I had a lot of fix and flips going at the time and I wanted to make sure any new purchases were great deals. I did offer cash with no contingencies. This was a little risky since I had not seen the interior of the home except for the little I could see through the windows. I knew I could make money fix and flipping this home at that price. They accepted my offer and we closed on the house last week!
Details on this fix and flip
This home is a ranch with a one car garage and a basement. The MLS listed the home as having an unfinished basement, but when I actually saw the interior of the home it has a room and bathroom finished in the basement. The home has 2 bedrooms upstairs, one bath, hardwood floors, newer windows and a decent kitchen. The home will need paint, carpet, appliances, possibly a new roof, landscaping work and I may finish a family room in the basement. I am estimating the repairs will cost from $15,000 to $20,000. When I first made my offer, I was assuming the basement was unfinished, but with the finished rooms in the basement, I think it will be worth close to $160,000 when it is repaired.
Future fix and flip plans
Like I said, I think I am maxed out now with fix and flips. I have one fix and flip selling next week, but no others listed right now. That leaves me with 7 houses that need to be repaired and sold! One house is almost ready, and I have others being repaired, but I have a back log of properties and not enough contractors. This is a good problem to have and better than not having enough properties. For now I am going to chill out on buying properties and concentrate on getting the properties I have sold.
For more information on flipping houses, including how I average over $30,000 profit on each flip, check out my bestselling book Fix and Flip Your Way to Financial Freedom on Amazon. It is available as a paperback or eBook.