A flip worth double?

In twelve months the home at 1543 E Palm Ave sold for $840k and is now worth exactly double? WTF?!

This goes to show the power of real estate development. Someone gets a deal on a house, adds $400k in value but thinks that time and effort warrants a 35% markup?

 

Listed at $1.685 million, after a paltry $10k reduction, you can buy a this overpriced, completely renovated 2127 sqft house on a 6923 sqft lot.

The interweb has bread crumbs leading to mid-construction photos as well as it’s previous 3/2 1297 sqft history. 

With that info not only can I come up with some back of the envelope costs to renovate and remodel the house but it also leads me to believe that like most flips this house has been “for sale” for months prior to an actual for sale sign being planted out front.

1297 sqft to 2127 = 830 new sq ft. At a generous $450/sq ft to add square footage you get $373k.  Even if I add another $100k to renovate the existing 1297 sqft that has me at $1.3 mil.

I haven’t seen the property in person but having been doing this a while I know how to look past pretty staging and fancy counter tops. It’s like some form of misdirection, look at my viking range and marble bath (just don’t look at the cheap closets, shoddy landscaping and keep your eyes off the poor workmanship that I forgot to hide.

Good luck with this listing. But it only takes one greater fool.

 

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