The Numbers:
Purchase for $87,004.00 on the day of purchase on the courthouse steps.
This home was very well maintained. Kitchen needed updated, interior needed painted, and the carpet needed replaced.. But we marketed “as is” so we did virtually no repairs. We did clean out, fix a water leak in the ice maker water line, and removed a water soften system rather than repair it. Total repairs $281.50.
Holding Costs that includes taxes, insurance, utilities, and interest plus a fee paid to the previous homeowner to move out came to $2,010.55.
Settlement Fees that include tax prorations, title company fees, and real estate commissions of $6,828.02.
Profit made was $13,453.90.
We held this house for 70 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 $87,004.00.
Our evaluation:
We learned about this home the day before the sale and took a drive by. In observing the exterior of the home we noted the yard was immaculate and have found that the inside usually matches the outside. We anticipated the home would have a resale value of between $135,000 and $140,000 all repaired.
Because the home was occupied when we purchased, we filed eviction immediately, although the previous owners moved out with in 30 days and we canceled the eviction.
Repairs:
- Repair water leak in the ice maker line
- Remove water softener
- Minor trash out.
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 $124,900 and dropped the price shortly to $119,900.
We had a few showings at the higher price but multiple showings and offers once we dropped the price to $119,900. In the end the neighbor and his realtor made an offer of $110,000 with no repairs closing in about 2 weeks. We took this offer and closed early.
On this transaction the Private Lender had an line of credit based on collateral in a brokerage account
Total Time: 70 Days
Total Profit: $13,453.90