I'm a new RE investor from Columbus, OH who plans to initially focus on cash flowing single family homes in stable owner occupied neighborhoods. It's very important for me to purchase properties at a discount to allow me to resell, if needed, at a profit.
I've spent the past 8 months reading as many REI books and BP posts as I could get my hands on. I've also submitted several offers on properties without much success (until recently). I did go into contract on a rehab house in August 2010, but that deal fell through because I didn't understand that you can't get a conventional loan on a rehab house. You live and you learn I guess.....
Fast forward to 2011, I'm finally starting to gain some traction on some deals that meet my criteria. On Friday I closed on an REO 3/2 1,050 sqft. house in a nice neighborhood. Initially listed for $69k, then $59k and finally $49k. I submitted a cash offer for $30k and we agreed on a price of $32.2k. Based on quotes I've received from general contractors, the rehab costs will be ~$17k and the house could rent for $950/mo or resale for $95k in today's market.
I'm also in contract on a HUD 3/2 1,444 sqft. house, This house had 105 DOM and listed for $78k. Final contract price is $58.1k and the rehab cost will be ~$15k and could rent for $975/mo or resale for $105k.
Reading BP posts has been key in keeping me motivated and confident that I could find deals that meet my criteria. My goal is to purchase at least 5 properties in 2011 and so far i'm off to a great start!
