A Bellevue Flipper in Caught in Action
by Bob Kelly
on December 30, 2010
in Bellevue, Investors, Real Estate
While researching comparable properties to a short sale that badly needs remodeling, I noticed that two of the recent sales had the same address and different sale dates. I had caught a flipper in action! The flipper bought the house on 8/9/2010 for $191,000 from an estate sale. (If you inherit a small house needing lots of repairs, you are pretty motivated to unload it cheaply.) Just under 4 months later, the flipper sold the house on 12/1/2010 for $275,000. That’s an $84,000 margin. Figure $27,500 (10%) for closing costs and commissions. He or she appears to have remodeled the kitchen and bathroom, brought in new appliances, added a half bathroom, replaced all the flooring, painted inside and out, and mowed the grass. What do you think? $30,000 in repairs and upgrades? Profit of $26,500? A little light. Perhaps the flipper trimmed some of those costs.
While researching comparable properties to a short sale that badly needs remodeling, I noticed that two of the recent sales had the same address and different sale dates. I had caught a flipper in action! The flipper bought the house on 8/9/2010 for $191,000 from an estate sale. (If you inherit a small house needing lots of repairs, you are pretty motivated to unload it cheaply.) Just under 4 months later, the flipper sold the house on 12/1/2010 for $275,000. That’s an $84,000 margin. Figure $27,500 (10%) for closing costs and commissions. He or she appears to have remodeled the kitchen and bathroom, brought in new appliances, added a half bathroom, replaced all the flooring, painted inside and out, and mowed the grass. What do you think? $30,000 in repairs and upgrades? Profit of $26,500? A little light. Perhaps the flipper trimmed some of those costs.
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