A couple of years ago we acquired a condo at auction with the intention of flipping it. Unknown to us, the HOA had recently sued the builder due to some construction defects. (A local law firm has all but shut down condo construction in metro Denver as they have induced so many HOAs to sue.) Anyway, sales in the complex were few and far between. We had it listed for around $300K and had it under contract twice but both fell through because of the litigation. We decided to pull it off the market and rent it. That was less than two years ago. We’ve had an awesome tenant the whole time paying enough rent so that it’s cash flowed.
The market in metro Denver is on fire right now and I’ve been watching sales in the complex closely. Despite the litigation, units have been selling and selling quickly. Financing is still an issue, due to the lawsuit, so many are going for cash. We decided to list it again a couple of weeks ago and got a full price cash offer on the first day. I was waiting until we actually closed to post this, as I didn’t want to jinx the deal. 😉
Less than two years ago we were looking at getting $285K for the property (and I can’t even remember if there were seller concessions. There probably were.) Today we sold it for $341,500. That’s a difference of $56,500!
So glad we decided to wait!