This property was another victim of 2016 hurricane, which was also found on the MLS. This property had been in some state of repair for 2 years since the owner bought it with the hopes of flipping it himself. The asking price was $30,000 on the MLS, but after our inspections and very precise negotiating we were able to buy the home for $15,596.00. Yes, you are reading that closing price correctly! This flip looked like it would be a home run for sure! But just like in life there were a few unexpected bumps along the way. We had worked out the contractor issue for the most part, but there was an issue with the HVAC company my GC went with. They were late by more than 3 weeks getting the new HVAC system installed, after that we found more issues with their quality of work. Which we of course fixed because we were not going to put a band aid on the problem.
My wife again did what she does best, and that is make this rehab a Show Stopper! We could have cut corners in the design, but that is not what we are about. With every showing the feed backs were all the same; comments after comments about the kitchen and baths! The little details from the built-in shelving in the living room/den area and the use of a butcher block island counter made buyers willing to pay our asking price! Original buyers hesitated when the report of a little section on the property that was in “flood zone”. According to FEMA none of the property was in a flood zone, but the state insurance powers that be made a small section part of a 100 year flood plain. So that made one buyers pull out, even after the survey paper work was shared with them. Again, another valuable lesson learned here in our local market.
Quick Break Down:
Time line from purchase to resale: 01 April 2019 – 01 September 2019
Purchase price at closing: $15,596
Rehab cost and holding cost: $48,812.77
Sale Price: $109,000
Profit after all closing cost: $32,355.95