Nov 12 (edited) • Deal Hub
Deal Breakdown: Why I Looked & Why I Passed
Property: Ponte Vedra, FL — 3 beds / 2 baths, ~1,813 sq ft, built 2001 (found the deal listed on Auction.com
Why I looked:
- Good size property in a desirable ZIP (32081) with potential upside.
- Appeared in an auction format — meaning if you bought right, you could capture value.
- Light rehab possibility (assuming condition allows) — which usually equals faster turnaround.
**Why I decided to pass — because risk was too high relative to reward:
- Neighborhood Sales Activity: There weren’t many recent comparable sales in that exact sub-area indicating many active buyers. If buyers aren’t readily buying at those price levels, resale risk goes up.
- HOA Neighborhood: The listing notes show an HOA (monthly dues) which adds carrying cost and complexity. HOAs can limit flexibility (renting, changes, etc).
- Project Price + Financing Load: A higher-tier property always means more capital, more risk. Even though the ARV might be solid, the acquisition and holding costs get large. If anything goes sideways (market shifts, longer hold time, cost overruns) the margin gets eaten.
🧠 Key Lessons for You
- Always check how many sales are happening in the neighborhood at your target ARV. If it’s thin, you’re assuming a lot of risk on the resale.
- HOAs matter. They add cost, can restrict use (especially if you’re flipping or renting), and sometimes bring surprise rules.
- Bigger properties ≠ always better. Bigger means higher entry cost + higher risk. Sometimes smaller, lower cost deals with tighter turnarounds are smarter for building momentum.
- Even when a deal looks “good,” you still have to pass when the risk-reward doesn’t stack up. That’s what separates serious investors from hopeful buyers.
📌 Community Question
If you were in my shoes: What’s the maximum acquisition cost (purchase + rehab + holding) you’d accept on this property to still feel comfortable with a 12-month hold and targeted exit?Drop your number and reasoning in the comments below — I’ll reply with mine so we can compare notes.
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If you’re ready to go from casual deal-watcher to action-taker and want hands-on help finding, analyzing, and closing your first auction property,Comment “I’m ready” below and I’ll send details about my 1-on-1 coaching program. Let’s make your first auction flip a strategic win.
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Deal Breakdown: Why I Looked & Why I Passed
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