The Sickest Fix & Flip Ever…with a $43K Profit?

14 Feb

These Pictures are NOT for the Faint-of-Heart…View With Caution!

We purchased this property Villa Maria for $87,000 at the Maricopa County Court House Steps in an auction on 8/19/08. It’s a 3 bed 2 bath home located in Glendale Arizona in a nice neighborhood just 7 minutes from the University of Phoenix Stadium where the Arizona Cardinals play football.

Front and Entry

Villa Maria Entry Living Room

Dog Pooped in the House

Dog Crap Enrty

Dog Crap In Living Room

Kitchen, Master Bed & Bath, Back Yard, Side Yard With Baggies of Human Poop

Kitchen Dining Room Master Bedroom

Hall Bath Bags Of Human Crap On Side of House Back Yard

Pool Was Fill in by the City of Glendale

Filled in Pool

We put about $38,000 of renovation into this property which appraised for $215,000 just a month after we bought the house. We sold it to a local investor for $173,000. We made a net profit of roughly $43,000…not a bad deal in this crappy market!  The foreclosed owner was single mom with 2 kids that lived in this house when we took possession, a dead beat dad left them for 6 years with no running water. In their divorce decree he was to pay the mortgage and maintain the home.  We hunted him down and made him pay for a new condo to house his abandon family and referred her to a great attorney.  He’s toast!!!

After Pictures

Front Exterior Kitchen Kitchen

Living room Master bedroom Livingroom

We Dug Out The Pool and Saved It

Villa MAria Pool After

Villa Maria Pool After

This was by far the worst house on the block, we made it the best house on the block and had a blast doing it!

Happy Investing!


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7 Responses to “The Sickest Fix & Flip Ever…with a $43K Profit?”

  1. Jim Kuttner 30. Jan, 2009 at 1:52 am #

    I can attest to this fix and flip. I am a REALTOR and I was driving nearby when Sean called me. He asked if I had my camera. I did and went over right away to take those before photos. I still tell the story of this place to people that care to hear it. I wanted to take a shower the minute I left the place.

    Sean and Mike are really good at what they do. Their experience is invaluable for anyone that wants to get into this business.

  2. Sean Terry 30. Jan, 2009 at 9:00 am #

    Hey Jim,
    You are right! This was a shocker when we went into this house. Thanks for taking the pictures and I hope you got the stink off you!!! Ha Ha

  3. Mario_Finkbiner 31. Jan, 2009 at 3:55 pm #

    Sean & Mike Interesting post. That was a classy act helping out the single mom & kids.
    How long did the renovations take? Why didn't you just wholesale the deal for let's say $117K?
    How did you guys determine ARV?

  4. Sean Terry 31. Jan, 2009 at 9:09 am #

    Thanks for the comment Mario, the renovation took roughly 2 weeks to complete, we took four 40 yard roll offs of trash out of that place. We could have sold the property wholesale but our business model at is to sell turn-key cash flow properties for $7,500 total out of pocket. Our buyers will refinance our seller financing at 75% of the appraisal plus the $7,500 down payment. Let me know if you have anymore questions. Thanks

  5. Mike Lima 01. Feb, 2009 at 9:06 pm #

    Hi Mario; It's Mike here. The rennovations took about 3 weeks. Because of the disgusting condition of the property — not just the excrement everywhere but we also had to jackhammer the hall bath to replace the broken plumbing lines — this was a property that most investors wouldn't have the stomach for in 'as was' condition. We had investors in our pipeline that wanted the property, as long as we took the risk out and put it through our remodeling/tenanting program. The best part is that in addition to us making a nice profit on this house, the investor purchased it with very little money down, received 20%+ equity in the house based on the bank's appraisal (this determines the Retail Value), and is already cash flow positive on the transaction. He has now purchase 3 properties from us and is looking for ways to buy more. In the end, we helped the single mom & her kids, we delighted the neighbors who came out in numbers to thank us for cleaning up the worst house on the block, and both the investor and us were able to profit as well. Thanks- Mike.

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  7. Susan Horton 07. Aug, 2011 at 3:09 pm #

    I can tell you did a lot of work repainting, putting in a new carpet and everything else. You really turned it around and even took the time out to help the previous owner. How awesome.