It has been almost a month since I last wrote about House #39. If you haven’t checked it out, have a look this is one of the Flip this Mansion houses we bought with numbers very similar to House #26.
Our Buyer originally sent in a conventional offer with 30% down, but in our negotiations they mentioned that the Buyer is a business owner and would prefer to do an FHA loan, if possible. I was not real excited about it, but the they did remove the loan contingency and appraisal contingency. Since they had a decent deposit that would be non-refundable, we decided to proceed.
- Like with many FHA deals, it took over 45 days to close. I am pretty good at following up with everyone but the conditions that banks requested took some-time. Also, the Buyer works out of town on weekends.
- We broke our original budget on this house quite badly. It still turned out to be a good deal for us, but not like the projections. Most of the budget overages where just due to us not being as experienced in high-end homes. Curved corners on drywall take a lot of extra labor, the custom sized skylights where very expensive, etc. We also decided to upgrade a couple of the items as we saw the market changing.
- The house is sold!! Our monthly carrying costs with hard money on this one where quite substantial and I’m glad not to be writing those checks anymore.
- We navigated through a pretty big and problematic appraisal issue. Originally, we had about a 10% value hit, but the loan officer made some magic happen.
- The Buyer got a great product for a fair price and we got paid for our efforts, which is always a good thing.
I hope we can find more like this one!