Foreclosure Investment: Remodel To Sell Case Study
Foreclosure property purchased from auction.com. Issues were encountered with the property. The purchase had been made sight-unseen, leading to unforeseen expenses that significantly reduced the profit. Wood rot in the roof, along with additional siding and fencing costs, added several thousand dollars to the budget. Labor and materials ultimately cost $69,000, which was significantly higher than the estimated $45,000. With the home being 1,500 square feet, the rehab costs were $45 per square foot.
This experience highlighted the hidden costs of house flipping, proving that a seemingly profitable project can quickly turn into a financial challenge when unexpected issues arise. I will never buy a foreclosure with such a small profit margin. Foreclosures do not allow for inspections which adds a lot of risk.
Project Photos
Before (30)
After (24)
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