Dusty Lane - Foreclosure Purchase, Rehab and Retail

Dusty Lane was a house that was a straight forward rehab and retail flip.

What really struck me on this house was how quickly it sold. I put it on the market on a Friday morning and by Monday I had multiple offers and lots of competition. It was bid up $13,000 over my initial asking price. A couple other good lessons is even if the neighborhood looks clean you need to make sure you look at houses at a time when people are awake. This particular home I looked at early on a weekday morning. After we closed I went back in the afternoon and was blindsided by one neighbor and the activity at this neighbor's house. Fortunately we were able to deal with this neighbor and all was well. But, this really shows that sometimes you don't want to be the early bird when looking at homes.

We paid $90,000, closed with private money, spent $30,000 on repairs and sold it for $168,000. We received five offers, we did a multiple counter and had four accept the price. Each one had a different request for us to pay closing costs. We actually went with the offer that had the lowest "net" price to us because the agent representing those buyers really made me feel comfortable.

After our selling costs, holding costs and credit to the buyer for their costs we had a net profit of $20,300. Surprisingly expensive to sell and hold a property huh? From start to finish we were in this deal almost exactly six months.

Our list of repairs are:
Exterior/interior paint, scraped the popcorn off the ceiling and re-textured, front/rear landscape, every plug, switch, light fixture, plumbing fixture and hardware piece were changed to nickel, we built out that custom slate fire place and mantle piece, put slate tile in the kitchen, changed out the doors to six panel style, had to replace the AC condenser because it was missing, slab granite in the kitchen and stainless appliances and other stuff I can't remember.

Here is the SLIDESHOW