Distressed Flood Property Sells For $55K Profit

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My name is Paul London. I am an experienced investor and have had luck finding investment properties in the MLS. Most of my investing experience is in wholesaling and I do some house flips, but I specialize in flipping land.

I have been investing for 10 years and this deal was a first of a kind for me. I found a property in MLS (East Nashville area) that appeared to have enough land property for at least 2 house lots. The house on the lot was in decent shape, but got lots of water in the basement due to bad flood last year.

Check out the water mark of about 15 inches up high on the basement wall. Also the home had lots of asbestos due to the age of the home.

It turns out the house was sitting squarely on one lot and the adjacent lot was basically yard. The whole package was on the market for $265,000. I figured the house was worth $245,000 once separated and the lot was worth around $125,000.

I put the property under contract for $210,000 and subdivided the land. I used some of my own funds and a private lender who I do business with often to fund this real estate deal. Subdividing the lots was very simple. I went down to the property records department and made sure there were no erroneous liens hanging out there and that each lot had its own property identity number. Then I got the water problem fixed for $3,500 by a local contractor. I did nothing about the asbestos because it was wrapped pretty tight and I did not want to have to call in the city inspector and get permits for any reason.

I sold the house for $145,000 and then the lot for $120,000. After all was said and done (carrying expenses, repair costs, paying brokers/realtors, etc) my exact profit was around $43,800 after a gross payout of $55,000. Not bad for around 4 months worth of work!

Paul London
East Nashville, TN

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Distressed Flood Property Sells For $55K Profit

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