Here it is ladies and gentleman. Iʼm currently waiting to hear back from my realtor as to whether or not I am the new owner of this property. If youʼve been following the blog for awhile, you know that: I already own two properties (my primary home and a rental property). You probably also know that Iʼve been looking to pickup another rental property to add to my portfolio for a few years now. If fact, there are a couple of blog posts to document my failed attempts in the past. You can read about those here here and here.
Iʼm looking to spend no more than $30,000 for this property since I will be paying cash. Fortunately for me, due to the “housing crisis”, there are thousands of properties in the Atlanta area (and in alot of areas around the country) that can be picked up for peanuts compared to what theyʼve sold for in the past. Each day, I comb the real estate listing in my area looking for the perfect investment property to come on the market.
A couple of weeks ago, that perfect property appeared on my computer screen. The property above was listed for $12,900. No, I didnʼt leave off a digit or put the comma in the wrong place. The property was listed for $12,900 and is bank-owned. There were about 12 photos available and they all showed that the house was in pretty good condition. Prior experience has told me that properties at this price and needing little work will be snatched up pretty quickly. I found the property at about 10am and by 12:00pm, I was on my way to look at the property in person. The listing broker could not meet me at the house but he was nice enough to give me the lockbox code so I could go ahead and look at it. After checking it out, I called the realtor and put in an offer.
The House. This little beauty is a 3 bedroom, 1 bath ranch on a crawlspace. It was built in 1950 but has been renovated within the last few years. The sales history for the house from the county public records are:
- $105,000 in December 2006
- $63,900 in July 2006
- $115,900 in February 2006
- $108,000 in April 2003
- $82,500 in October 2000
Financials. I said earlier that the house was listed for $12,900. I knew that if I put in an offer of $12,900, I would be quickly outbid. My initial offer was for $15,000 cash with no contentions. A few days after my initial offer, I heard back from the realtor. The home had over 10 bids already and my offer was not among the top. I initially decided to give up on the house and move on to the next one. After doing a little research on the comps and having my uncle (the contractor) check it out, I bumped my offer up to $25,000. I really think the home is worth approximately $60,000 in the current condition. I should hear something on 4/12/2010. You guys wish me luck and Iʼll let you know what happens.