Been a while since I have been onsite. I have been desperately trying to complete a first deal. Got to a down point,but thanks to a very helpful seasoned investor from this site,I got back on track and it seems like some things are starting to happen.
I took Dean's advice & got an 800# from COA.One of my extensions is about me buying houses.I posted an ad on Craigslist about buying houses and gave the 800# extension with my recorded message.Yippee!Someone actually called about a property they want to sell!It is another investor and I contacted her to get as much info as possible so I could do my due diligence.
Forgive this long post,but Anita recommends that we provide as much info as possible.
The REI purchased the property in 2005 for $32K.A total rehab was done and she spent about $45K on it.She is not looking to make anything on the sale,but she would like to get back what she put in so she is looking for at least $70-75K 'cause she needs cash.
This is what she did in the property:
Exterior:installed new windows,new water line under ground (water pressure was low and there was a leak,repaired broken bricks on the porch,installed exterior latern and mailbox on the front,installed sensor light and replaced/painted wooden fence in back.
Interior:upgraded breaker box to 110 amps and upgraded electric with new wires.Installed recess lighting in living room,kitchen and basement.Removed the wall separating the litchen from the dining room to create openess.Kitchen was gutted and installed oak cabinets, nickel ceiling fan,backsplash,microwave,oven,dishwasher, refridgerator,garbage disposal and stainless sink in addition to an island with countertop matching regular countertops.Drywalled the basement and installed wall to wall carpet.Painted laudry room and installed new sump pump,utility tub,and screen door.The washer and dryer was existing when she purchased.Sanded and finished hardwood floors throughout the house.Gutted bathroom and installed new vanity,tub,fixtures and nickel bathroom accesories. Installed tile on the bathroom walls and floor.New plumbing in bathroom and throughout the house (PVC).
There is already a tenant in place since July 2009 paying $950 per month.Tenant has a voucher with a disability program,not section 8.The Voucher program inspects every 3-4 months to ensure tenant is taking care of property. Tenant desires to stay in property since it took her 2 years to find the right place.
These properties sold on the same street (different block, but same townhomes) in 2009as follows:
3542 - 12/2009 - $119K /3549 - 11/2009 - $128,500K
3550 - 11/2009 - $126K /3553 - 12/2009 - $119K
3424 - 02/2010 - $120K
Rental rates range from $800 - $1250 as reasonable for a 2 bedroom center unit.
It is a 2 story,2BR,1BA,a sitting room,living room,dining room,finished basement.
I want to wholesale the property.Doesn't appear to be any rehab needed.Tenant is already in place with guaranteed monthly rental payments providing a passive income of $11,400 @ current rent,but could go up to $15K a yr.
I want to lock up contract with owner for $75K cash and make at least $5K on wholesale deal. Am I on track or selling myself short? Is $120K a fair wholesale price?
Please respond quickly as I don't want to hold up the owner.
Always striving to move forward toward better times!