House #5 – Side-by-Side

House #5 has a story behind it, like every property does.  When we first started making offers, we had no farm area.  We looked anywhere and everywhere.

Well one afternoon, we looked at two houses side-by-side.  Our crazy optimistic side dreamed that we’d be able to buy both properties at a HUGE discount and rehab them both at the same time.  So we ended up submitting offers on both of them (two different asset managers) in the low 100k range.  They both needed a ton of work and the we didn’t get built into a maze, one bedroom connects to another with probably 8 “bedrooms”.  We never heard back for almost three months and the “maze” ended up selling for $160,000. Two months later we got a call back from an agent asking if our offer was still valid on the house next door.  We reviewed things and let the agent know we’d be willing to re-submit our offer at $88k. So we got this property, in better condition then the neighbors for $72k less (almost 50%) then the one right next door.  And sure enough while I was looking through the property, the neighbor introduced himself and asked what we paid for it!  I have to admit I was not completely honest with him.

So now we have this property under contract, at a great price, so we start getting excited.  But like we experienced with House #2, the City ended up putting a lien on this house and would not allow escrow to transfer the property until the grass was green again.  To make a long story short, we opened escrow in early October and did not close until December 11.

I will post more info that details about the repair process, as we are almost complete fixing it.  But our budget is $20,000 the only non-cosmetic change we are making is converting the master half bath to a small full bathroom.

Before Picture

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