So, I have been watching a property in one of my target areas for some time. It sits across from a lake and a commercial property. It went to a foreclosure auction today. I set the limit I would go to and the auction never reached that price! I WON the auction! I AM NERVOUS! To say the least!
I found out the 'commercial' property across the street is being rezoned to residential... and is on the market for $1M!!! Now that ought to be a good thing for this property's value.
Here's the info:
1465 sq ft
Price paid 43,000 + 2500 for costs (New price I'm trying to renegotiate is now 5K in light of the findings and would require a total rebuild (basically buying land)
Conservative ARV: $180-200K
EXTREMELY LOW rent: $1200
Estimated (VERY)repair costs: 40-60K
I'm paying for the property through my self directed IRA and going to secure a private lender for the fix up of the property. I'm not sure if I'm going to flip this one or hold on to it. If I hold on to it, I stand to have a positive cash flow of over $500/month. If I flip it, I will have from 70-80K upfront. I'm not sure which option I'll choose. I looked on a few advertising sites, and there are many people looking for rentals in the area, so its very tempting to do a buy and hold. Especially if I could hold on to it until the property across the street sells and is completely converted to a SFR from what appears to be a restaurant.
It was sold by Fannie Mae, and guaranteed to have an insurable title.
I'm NERVOUS! EXCITED! ELATED! PRAYING! ANXIOUS! JUMPING UP AND DOWN LIKE A NUT!
~Faith is being sure of what you hope for and certain of what you do not see. Hebrews 11:1
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