One of my financial goals for 2009 was to purchase an additional investment property. After yesterday, I may just be one step closer.

I've been searching for additional properties for months. Due to the poor housing market, there are thousands of properties available for deep, deep discounts. There are numerous properties in the Atlanta area that can be purchased for less than $10,000. Most of them require a lot of work. The one's that don't require a lot of work are getting snapped up quickly. I finally found one close to home for a great price and it does not need a lot of work.

Here's what it looks like:
Here are the details:

  • Listed for $24,500. Bank Owned.
  • 2 bedrooms, 2.5 baths. Built in 1988. Brick front.
  • Originally sold for $112,000 back in September 2005.
  • I would estimate it needs roughly $2000 in repairs.
  • Estimated market value - $89,000
  • Next door to a YMCA, close to shopping, close to the interstate and on the bus line.
  • Rents in the area are $650-850.
My real estate agent faxed the offer to the bank's listing broker yesterday. I should hear something within 24-48 hours. Since it is a bank owned property, it may take a little longer depending on the workload of the asset manager.

My agent put in an offer to the bank of $22,000 plus closing costs, a $3500 carpet allowance (I plan to have it cleaned before I replace it) and a home warranty.

Wish me luck and I'll keep you updated!!


  1. Psyche // February 6, 2009 at 7:31 AM  

    Wow, that is an unbelievable deal for anyone who is in a position to take advantage of it. I hadn't heard that the Atlanta market was so rough!

    I'm in Chicago and have been looking at properties (but for a personal residence, not investment) in the $100k - $150k range. Everything seems to be about 10% off of where it was 3 years ago if it is still current, and about 30% off if it is REO.

    What a deal! Keep us updated on how the offer goes. Do you finance your investments or pay cash? How many investment properties do you have, and are you making money at the bottom line on them currently or breaking even?

  2. lulugal11 // February 6, 2009 at 7:39 AM  

    That is a superfantastic deal that you just jumped on dude.

    All the best and I hope it works out. You are sooooooooo lucky!!!

  3. laneerg // February 6, 2009 at 8:03 AM  

    That is a nice looking place and it sounds like a fantastic deal. Good luck!

  4. Sheena // February 6, 2009 at 8:17 AM  

    That's a nice place. Only in ATL can get you a home like that for $22,000; that would be impossible in Philadelphia!

    Gotta love the south. Everything's cheaper!

  5. Tom // February 6, 2009 at 10:07 AM  

    That's awesome!

    Good luck with everything, I hope they accept (I think they will).

  6. zeromoney // February 6, 2009 at 10:28 AM  


    canada is no where near being in a situation like that.. infact in my city prices are still rising.

    in 4-5 years if the market turns around, you could maybe sell that investment property for 5x what you paid for it.

    or just keep it as steady incoming income

  7. Yana // February 6, 2009 at 11:12 AM  

    That's fantastic. I wish there were deals like that in California; we'd be able to own a house right now.

  8. Kate Kashman // February 6, 2009 at 2:05 PM  

    That's awesome! Too bad we can't all live in Atlanta :)

    I hope this works out wonderfully for you.

  9. DogAteMyFinances // February 6, 2009 at 6:36 PM  

    What's your emergency fund goal with all of those properties?

  10. Jason // February 6, 2009 at 7:40 PM  

    Wow, sounds like you have done some great research and have figured out much of the foreclosure game. That's an amazingly discounted rate! In Dallas, I see 20-30% cuts for REO, but then again, I'm probably not looking as hard as you are.

    I'm jealous, definitely jealous!

  11. Wenny // February 7, 2009 at 12:17 AM  

    Good luck! I hope you'll be successful with this investment.

  12. TheNightTrader // February 7, 2009 at 12:52 PM  

    Wow! Good luck man! My wife and I just bought a house (close in a week), but we never could find anything in the Wichita, KS area for a deep enough discount :-/. Even REO and short-sales that need a lot of work are still going for 80%+ of market value :-/.

    So we ended up buying a brand-new spec home with an unfinished basement. We picked it up for about 95% of market value, but we should be able to build some decent equity w/ landscaping, basement finish, etc.

  13. J. Money // February 7, 2009 at 2:04 PM  

    Dude - GOOD FOR YOU! that's like half the price of all the cars my crazy friends are driving around here ;)

    To think you can get a house and then turn it around later for such a profit? Unbelievable, great researching my man, i hope you get it!

  14. Cheap or Frugal? // February 7, 2009 at 3:45 PM  

    That is freaking amazing. Even for $112,000. Here in the Washington/Baltimore area, I bet that house would have gone for 250 to 450K, depending on the specific area it was in. In today's market it would probably go for the price it did in Atlanta in 2005!

    I hope you get it! Congratulations on finding such a gem!

  15. TheNewCPA // February 9, 2009 at 10:11 AM  

    Nice! Good luck with that.

  16. Cool Guy // February 9, 2009 at 10:47 PM  

    Dude, you're like my new hero! I only have 1 house right now, but here in the Phoenix Metro area we have a lot of great foreclosure deals. Party on Dude!

  17. dreamfool // February 10, 2009 at 12:26 AM  

    Cool - how do you find this house? Do you still pay the standard commission?

  18. Atlanta real estate // February 11, 2009 at 9:52 PM  

    Great deal man! Best of luck to you!

  19. Jennifer // February 12, 2009 at 6:23 PM  

    Whenever I see properties listed for under 100,000 here in Vegas, at least in the part of town that we'd like to live (low crime rate, nice neighborhoods, good schools), they are torn up inside. It's horrible.

    In fact, sometimes the homes in the 100,000 to 130,000 range are messed up inside as well. And if the aren't, they get snatched up really quick! It's so hard, especially when we fall in love with a place and imagine it being ours. :(

  20. Anonymous // February 25, 2009 at 1:44 PM  

    i cannot believe some of the prices in the states... unbelievable. that house would easily be $200-$250000 in seedy parts of Toronto.