House #27 – Next Rental House

House #27Here is our latest purchase, we put this house into escrow about ten days ago.  This house is different from our typical purchases as it needs next to no repairs.

The house was originally built in the 1940’s, but the previous owner did a really good job of a permitted bedroom and bathroom addition.  The layout is good, the only thing that will eventually need some upgrading is the kitchen of this house.

We paid 15% over the list price for this house and we just got the appraisal back, we paid 57% of what it just appraised at AS-IS.  Shocked me how amazing of a deal we where able to get.  The listing agent told me they had 20+ offers on this property, but the bank just didn’t want to deal with FHA offers and possible appraisal issues on this house.

This house is going into our rental pool and will be our seventh rental property.  We are having decent success getting our properties filled up and we are starting to get excited about being landlords.  Our goal is to have over 20 properties by the end of 2010, so at this rate we need to average about one a month, would should go pretty smoothly.

It seems like everything we bid on has tons of offers these days, so the market is getting hotter and I’ve really seen prices trend up over the last 3 months.  Asset Managers are starting to move pricing up of their REO properties.  So far, everyone has done a really good job of controlling the pricing of the market.  I wonder if it will last?

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One Response to “ House #27 – Next Rental House ”

  1. Mike Z says:

    Nice work. In my market I am just starting (like last 10 days) to see a market shift again. Just a little more inventory and prices still seem good. Can’t wait until they stop the first time buyer programs as it will give us more buying opportunities
    I just locked up a duplex so I need 9 more by end of 2010 :-)

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