House #18 – Sold!

We bought House #18 in August and 154 (5 months) days later we closed our sales escrow.  Once again, Christmas and New Years slowed down our sales escrow by 2-3 weeks and we needed a review appraisal which took another 7 days.

Our purchase price was 42.3% of the sales price and our repairs where 18% (I need to double check our final repairs costs).  Putting our purchase and rehab at an estimated 60%  on the dollar. The market has sure gone up since we bought this one!

We had it under contract about $15,000 higher than it appraised, I knew we would run into appraisal issues, and we ended up splitting the difference with the buyer (they paid $7,500 over appraised value).

Although, we have been making purchases our inventory level, especially with properties we are flipping is really low!  We did put one more under contract today that will be a flip.  But we really need more inventory to work on.  I think it is time to start really shopping for properties again.  We where supposed to close on 5 purchases in January, but two properties ended up getting the electric meter pulled while in escrow so the bank needs to fix it or give us a discount.

Our appraisal came in at a great number for the mansion house (House #26) so the buyer is ready to move forward, they are going to pay a little above the appraised value.

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6 Responses to “ House #18 – Sold! ”

  1. J Scott says:

    You guys are really cruising…congrats on the last couple sales and contracts!

    J Scott
    .-= J Scott´s last blog ..House #15: Officially Ours =-.

  2. qknic says:

    Good return on investment! Are you brain storming on possible concessions to move your houses quicker? IE “seller pays 3% towards buyers closing costs etc?
    I have had good luck with a 2k appliance package and similar “look at me” goodies.

  3. Steve says:

    QKNic – We do not have a problem receiving offers on the properties. Almost everything we sell is to FHA buyers, so we need to wait out the 90-day rule. We put this one in escrow (after 15 offers on day 91), it just took 2 months to close escrow. Speeding up the escrow is a constant work in progress!

  4. I’ve been hearing a lot lately of people having to split the difference between the selling price and appraisal price. How often have you had to do that this past year?
    .-= Scott Costello´s last blog ..Some Personal Updates =-.

  5. Steve says:

    Hi Scott –

    All of these properties are setting new sales comps in the market, so our stuff is usually the best inventory on the block (full rehab, standard sale, etc).

    I checked, we’ve got buyers willing to pay over appraised value (full contract price) 4x. We’ve come to a middle ground 2x and been cut a long way 2x (one stupid VA loan).

    How is investing in New Jersey going? Finding any deals?

  6. qknic says:

    Steve,
    Awww your correct I wasnt adding in the FHA rule. Amazing to have that many offers. Congrats

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