Bit of Details of My Second Purchase

I bought my second property within two weeks of buying my first property. This home was a foreclosure that was less than five minute drive from my home. My initial offer on this detached cape cod was 130, and I was the only offer. Within three days, the listing agent told me that two other offers were just received. So we have to go to highest and best. He told me where I needed to be to get the property at 136,000. I turned in an addendum and had the property.

Were there other offers? Probably not, the property was listed well over 60 days. But that helps his stats and it's part of the game. Can you ask after you get the AOS back just to see the other AOS and call him out. I don't know! Anyway,,,,,,

It was a 4/1.5 that I made a 4/2 very easily, but it cost me more than what I thought it should, but I will talk about that later. There were two beds down and two bigger ones up. This home was built in 1974. It was a typical cape with all siding. I spent 3500 adding fake stone on the front up to the bottom of the windows, necessary---no, but this was my investment and I like my properties to be special. I spent about 25,000 on upgrades redoing baths and changing the second floor bath from a half to a full. The first floor was all Oak--- that was painted grey. On "Property Brothers" I saw them once paint the oak floors. Thought it strange but they did it, but I stripped it down and refinished.

This home had some issues from the past owner in that he did not like using toilets. Neighbors told me he would walk outside and pee or just go out the window. This is in a neighborhood of 8000sf lots. It's tight. People see things. But I wish he used the outside more because the floor was heavily stained. The smell during the sanding was the worst. The heat from the sandpaper made it unbearable. I would rather spend an hour in a job Johnny than an hour in the home. What do I do now? We used OiL poly and that sealed the smell in. I went with a darker stain the help hide the stains and the floor looked really good, not great but really good. The bath floors were tiled, granite over original oak kitchen cabinets were added. The second floor was recarpeted. I always change outlets and switches and added new lighting. New appliances were added as well as a tiled backsplash.

So I have $161,000 in the home now and asked my banker for $140,000 loan for 25 years at 4%. Taxes are 310 a month and insurance is 70 a month. On a rent if $1550 I make $430 a month from this and have a good tenant who loves the home. Ok. They all do .after one year he has been late 9 out of 12 months, but always pays the late fees. Currently he is now paid through MARCH! Yippee for me. The home appraised by the bank at $170,000 a year ego, but currently the comps tell me 187,000. Got to love that. The principle pay down over the first year is about 1400.

Basically I have $21,000 invested in this home and get almost 7% in principle pay down and 25% on profit. Add depreciation and appreciation and it is a deal I like.