Latest Inland Empire Real Estate Deal

It has been a pretty boring week.  The market is a bit slow, still getting a couple calls on the stuff we have for sale and actually got one or two decent offers so that looks promising.  We are lowering what we’re willing to pay again, pricing us completely out of a lot of stuff, so we haven’t been looking real aggressive.  We put another one under contract, just an okay deal, but will make a good rental (it’s in our main farm where we have many rentals).

Here are some pictures of the latest deal we just closed on.  This is definitely the worst house in a great neighborhood.  It is actually one of the better houses we have owned.  I would love to keep it, but the prices are a bit too high, plus I think I have a buyer who would buy this lined up.

The house is 3 bedrooms, 2 bathrooms, and about 1,600 square feet.  On a good sized lot, and it needs everything. The roof is bad damaged, the ceiling had some water leak through to it, so some of it needs replacing.

Overall, we paid a little bit more then we normally do, but it should sell quickly with a decent profit. The main logic behind paying a little bit extra is, this is a new REO office for us that is pretty big.  We wanted to show them we could perform and hopefully get on their short list.  We already put a second house under contract and now one of the agents is calling us about his pre-listings!  Which is always nice.

Here are the pictures:

Family Room

The hole in ceiling

Kitchen

Have a good weekend everyone!

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4 Responses to “ Latest Inland Empire Real Estate Deal ”

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  2. Luis says:

    Steve, since you mentioned you paid a bit more than usual, let me ask; what kind of “numbers” are you usually looking to see when deciding to pull the trigger on a deal?

    I have found that for my market a potential profit of $18-22K is realistic and doable for me. Usually the rehabs I do are in the $20-30K range. So this has me buying properties at around 45-50% of ARV. Do you analyze it the same way?

    Thanks,

  3. Steve says:

    Luis – I always analyze the all-in cost.

    Purchase Price + Rehab / ARV. I am looking to be at 70% or less. 65% is really my preference. As prices go up you can pay a bit more.

    As the ARV goes up you can pay a bit more.

    I also work off a minimum profit desired and then goals for ROI on cash invested. So sub 100k ARVs you need to be cheaper.

  4. Steve says:

    This house we are about 72.5% on the dollar. New office we want to get in with.

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