Flipping House Series: The Mold House Part 1

Our next house in our Flipping House Series could not be named anything else but The Mold House. Our team purchased this property at the county courthouse foreclosure auction. Purchasing investment properties in this manner is not for the faint of heart. It can sometimes be risky because no one is able to have actual access the house before purchasing.  Purchases like this requires extra due diligence and there is always the chance there is an unforeseen issue.

The Mold

Once the house was won by our team at the auction we promptly went to inspect it. Once the mold in basement was discovered we knew we had a challenge ahead of us. While mold doesn’t mean the house is un-sellable in the least bit, it just takes a good know how on getting rid of it. In some cases, if the house is on the public market, mold can deter regular home buyers and leave a wider window of opportunity open for real estate investors. In the real estate investment world, mold can be the smell of money.

The Water

The second issue with The Mold House was water in basement. We quickly realized this was due to sump pump not running because power was turned off by the bank. This is somewhat common and is something investors should definitely be aware of with foreclosures. the positive to this is it can present good buying opportunity if the only repair needed is to provide power to the sump pump to remove the water.

The Norm

This house will also get our normal run through on a typical foreclosure. We will replace the carpet and flooring in the kitchen and bathrooms. The house will also get a fresh coat of paint though out.

Check back in a few weeks to see what our team at Part-Time REI does to overcome The Mold House issues.

To learn more about Part-Time REI visit us at http://part-timerei.com/

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Erik Hitzelberger has been Real Estate Investor since 2007. While learning the ropes in the market down-cycle, he now teaches others how to use his systems and leverage other people’s expertise to achieve their own goals.

Erik Hitzelberger – who has written 194 posts on Part Time REI.

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