The Numbers:
Purchase for $110,000.00 on the day of purchase on the courthouse steps.
This home was fairly new. New home builder had built, sold to investor for lease to own purchase, and then were foreclosed on. Home needed paint and carpet and we opted to change out the vinyl flooring to ceramic tile floors. We spent $8,500.70 in repairs..
Holding Costs that includes back taxes, insurance, utilities, and interest, came to $2,704.14.
Settlement Fees that include tax prorations, title company fees, and real estate commissions of $10,641.60.
Profit made was $12,298.56
We held this house for 65 days.
The story on this house:
This home was purchased on the courthouse steps for cash wired to the bank trustee attorney completing the sale by 5 pm the day of sale in the amount of $110,000.
Our evaluation:
We learned about this home the day before the sale and took a drive by. In observing the exterior of the home, the yard and the exterior were in fairly decent shape and was on a street of about 5 similar homes that had been or were being foreclosed on.
We could not get inside of this home, but had been inside of a similar home 2 doors down and found it to be in decent condition and by looking in the windows we anticipated mostly paint and carpet repairs.
We then turned to running the numbers of recent homes sold in the area and found home selling between $140,000 and $150,000 for average homes.
Repairs:
- Replaced the Carpeting
- Installed Tile Floors in the Kitchen
Touch ups to interior paint
Marketing:
We listed home for sale in the MLS and marketed heavily to local Realtors who work the area as well as the top 20 or so home selling web sites including CraigsList. We listed at $149,900.
We had multiple showings that resulted in several different offers. We accepted the $144,150 offer.