Yet another purchase

Hubby found a great deal on a house from an online service that sends him emails daily (I think his realtor set this up).  It is very close and was listed for $79,000.  He asked me to go look at the property because he was going to be very busy. The usual realtor wasn't available, so another member of his "team" met us there (hubby ended up leaving work early to see the place).  It is in really great shape, and in a really nice area.  Lots of cosmetic stuff, and the mechanicals need to be replaced (furnace, hot water heater, etc.).  Our HVAC guy came over to see it later and said he could easily install central air (it is a rancher and the floor of the main level is exposed in the basement). Central air will instantly add $10,000 in value.  There is some dispute about how much it will sell for when finished.  I think it could go for nearly $150,000.  The realtor said the absolute lowest was probably $125,000.

Hubby bid $75,000.  The listing was weird.  It was originally listed for 75, but then taken on the market and relisted at $79,000.  They want a cash deal, and a very quick closing date. We may end up closing on both properties in one day!  Luckily both will be pretty quick turn-arounds and hubby can quit his job for good to keep the business running (that was our goal all along).

Not much happening on the rental front.  One severely behind unit is now on a $350 per week payment plan from now to the end of May to catch up. I am doubtful.  The other unit that is majorly in arrears had a 2nd eviction notice posted last week.  They will probably be out by the end of April.  Early in the month, we have rents from 4 out of 7 units.  A fifth unit and the first $350 payment are supposed to be collected on Friday. Keeping my fingers crossed!

Frustration over bid process

Found out today that the bidding on this property is restricted to owner-occupied until March 17th, another week!  Apparently this happens a lot.  I find it hard to believe a lot of first time homebuyers would be interested, but you never know.  Anyone who bought it would need a mortgage plus extra money for the renovations.  Hubby planning to go out house-hunting again tomorrow to see what else is out there.  The housing market seems to be picking up a bit.  A few places on his short list are now under agreement (with someone else!).

Bid finally submitted!

Hubby finally got a bid submitted for another property to flip today.  Didn't yet bid on either of the properties we had seen previously.  A hot property came up and he felt that he had to act right away. It is a townhouse in a nice neighborhood.  Other properties in the same development sold/listed in the 120K range.  The price on this place just dropped to 50K.  I didn't see it, but he says it only needs paint and carpet (and plumbing repairs, and some mold renovation and ..... you get the idea!).  The bottom line is that the price is cheaper than our first flipping property, the potential sale price is a lot higher, and the cost of repairs needed should be lower.  He jumped on it right away and put in a bid for $100 over the asking price.  It is still a bank owned property, but we are hoping that putting in a bid at the asking price will allow the bank to move on it right away (on the other properties we were looking at we would have to bid much lower than the asking price and the bank takes forever to approve that).  Very exciting turn of events!  Can't wait to get started on the renovations!!

On the tenant front, one group has signed a modified lease and hopefully will be back on track soon (hubby put their actual pay days in the lease as rent days).  Unfortunately, another tenant asked for a meeting last night to tell hubby that he lost his job.  Not really looking good for these folks at all.  Luckily the economy is improving and (they claim) a tax refund is coming in shortly.  That may buy them a little time to get on their feet, but an eviction notice will have to be sent on Monday, just in case they need to forced to move out of the apartment.  It is a shame, but there are two able-bodied adults in this unit.  We can't support people who just can't manage to find and hold jobs.