This post is just a short update on REI. We had a deal drop in our lap.
The Deal
We were not specifically looking to buy another property immediately. As detailed in a previous post, we were working on a deal earlier in the year, but it did not work out.
A member of the local REIA, who is also a realtor, has been looking out for properties I might be interested in. I had given her the specifics: three-bedroom, two-bath home on a slab foundation, preferably brick façade, in Thibodaux, in a decent neighborhood.
She had showed a couple of homes that were close, but not quite right for us, in addition to a mobile home park that was just too much for us to take on. (This was just prior to my surgery)
She contacted us with a property that fit our description exactly and told us the listing price, $144,500, and to make an offer. She indicated that the sellers were motivated. I looked it over and saw that we would be looking at a similar ROI to the property we bought last year with an offer of approximately $111,300. I did not think that the owners would accept that and they didn’t. They countered with $125,000 and we countered back with $112,451 cash sale with an end of month closing as a best offer. This would give us a ROI of just under 7%, based on a conservative analysis.
We fully expected things to end there. The sellers asked for the weekend to think about the offer, so we agreed.
On Monday, they accepted the offer (to our surprise) and we began the inspection period.
We set the closing date for the first Friday in December, as this was the soonest that the real estate attorney could complete the paperwork.
During the due diligence period, we determined that the only things needed were to change the locks, change an over-sized circuit breaker, and some minor cosmetic work.
Updated: We now have it listed for rent and are taking applications. The property was rented for January.
And, as always, let me know what you think in the comments. Ask questions, tell your story.
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