UPDATE on last week's post:
Santa Fe Trail, Plano- Really nice house in Plano, across from an elementary school. The only real thing wrong with the house was the foundation, but it was a biggie. There wasn't a level spot in the house. Probably due to two huge trees close to the house. Beautiful, but pounding the foundation. Also, it was an auction property. My offer would have been around $63,000. The current highest bid was $68,000. So I'm probably out on the property. I ordered a foundation inspection from MBR, will be getting the results today.
Gwendola, McKinney - These sellers are in denial. The house is in need of foundation repair and total updating. Paneling, carpeting, popcorn ceilings, and a kitchen that needs total updating. And a patio that needs a cover added to reduce the amount of rainwater that collects towards the house causing foundation issues. Their asking price is $120,000. Based on the comps I pulled, the house ARV is around $90,000. There have been several foreclosures and short sales in the neighborhood. Not their fault, but these impact my ability to sell the house once it's rehabbed. So I have to take that into account. So I had to drop my offer to around $65,000. Well, if they rejected $84,000, they're surely going to reject $65,000. MBR already had a foundation inspection on the house, and it was around $8,000.
Merriman Park house - I thought the ARV was too high. Someone else didn't. The house was purchased within the evening. Maybe they expect to make less than I did. Maybe if I'd reduced what I expected to make on the deal...who knows. But I would rather let a good deal go than invest in a deal that might possibly go bad. I know there's no sure things, since I've been doing them long enough to know. But this was a $175,000 investment in a house that would ARV around $250k. Since it's a little "rich" for me, I stuck with my original premise. I've watched the house down the street from me that has 250 sf more than this house reduce they're asking price from 289 to 282. It does have a detached garage, and backs up to Abrams Road (a reasonable distance away to really not be an issue) but is rehabbed pretty nicely. Again, time will tell and I'll watch both of these properties as they evolve.
I'll be looking at a HUD home in Mesquite. South of I30, just east of 636. It's currently owner purchase only, but will go investor in the first week of February. So I'll look at it today and have my numbers ready to go to submit my bid if necessary.
The real estate seminar I went to on Saturday was interesting. Learned a few tidbits before they put the sales pitch on. One thing they stressed...don't do a deal unless it's 20% or $20k profit...period. Well, I've had that rule for the last 5 years. So I guess I've been on the right track. Ended up running into a business acquaintance from 20 years ago. He's been in real estate extensively, and was there to look at getting his wife involved in something like this. We agreed to visit again in the next week or so. I almost decided not to go, because we had company coming over that night. But I went, and made a connection with one person that could prove to be a good one. So you never know. But I do know that I wouldn't have met him if I was home cleaning house and getting ready for company. So go to as many of these type of events as you can. You'll learn something, and you'll meet people. That way you cover both ends of the "it's now what you know, it's who you know". I think it's both.
Until next time...
