Just a quick post so I can finish catching up. I am so happy to report that as of Sept 1, 09 we sold House #4. We bought this house way back in October and it was an ambition project. The previous owners had converted it to a duplex illegally and city code enforcement officers go in real aggressive and threatened the bank who inherited it that they would demolish it if it was not fixed.
We spent wayyy too much money on this project along the way. We did not start our blue prints for permits until 30 days after we closed escrow and finished demolition. Now we start them right when we put a house under contract (if we need to get permits).
Overall we still made a great profit on this deal, I would imagine we left an extra 15-20k on the table with cost overruns and additional carrying costs. But we definitely learned a lot along the way.
This property also has another negative first. This is the only property we have put in escrow with a buyer that could not close the deal. Basically, the agent, was not very good and somehow got loan approval for a buyer that could not get a loan on this property. It sounded like she had overtime income that they would not credit her for. We tried to work something out by financing about $10,000 with a 1 year balloon payment, but it was just more wasted time.
The second agent who put this property was a pro and he closed in under 30 days. His buyers are in love with the property and very happy with our work!
Our favorite part is we are carrying very little inventory going into the winter. The property we’ve owned for the longest is House #15 which we purchased 7/27. I will make a post on the rehab for this one as it is almost done.