House #7 was an interesting property. It was a HUGE lot with over 30,000 sq ft. The front of the lot had a 3 bedroom 1 bathroom house built in the 1940′s. The back of the lot had a duplex with two 2 and 1 units and was maybe built in the 1960′s.
The layout of the property was not ideal.
We had made an offer on it and forgot about it because it went under contract with someone else… apparently at over $50,000 what we offered. About 60 days later the agent called us and asked if we would like to make another offer. We told our agent we would be willing to offer the same amount.
The agent ended up telling us there was someone else that offered more etc, so we came up a bit but not to where she wanted us to come. Apparently the person who offered more did not exist or could not come through so we got it.
Our lender was not crazy about the property, even though it got a great ARV appraisal (well over double what we paid for it). We started to advertise it really hard as a wholesale property and found a cash buyer that was interested. The same person who later bought House #9.
So after some tough negotiating we sold it for 10% profit. The buyer ended up getting a great deal and once he rents it he should get a 15-18% cap rate.