BiggerPockets

OK - here we go...

Was an assisted living facility (my great aunt died there last year :(

The corporation had it listed for $249k - trying to sell it as an assisted living facility shell.

Reduced the listing price to $149k.

I offer $139k this morning. Accepted in a hurry.

It is a 3200 sq ft 3br/3ba that is on .611 acres

Damn - they didnt counter - that pisses me off

10 day option in effect tomorrow around noon.

9am inspection

10am subs show up for bids on closing in 2 car garage for master on one side, divide electrical, full kitchen construction on the other side and upgrade bathrooms

Duplex in the making

Here is the question:

Resale/Lease Purchase Option/Subject to

OR

Rent???

Resale as 2 separate properties gives off $10k each

Rental - Cash ROI = 12%; Total ROI = 18%

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This is the first in a series of investments for this year. Would like to flip 4 properties and acquire 4 properties.

Any outside perspective is very appreciated - Thanks!

Gotta make ya wonder why they didn't counter and accepted in a hurry lol...

Maybe you really just got lucky, or maybe..............

regarding your question, were you asking what exit plan you should use?
I ask because I saw you mention Sub2. While I love Sub2, I wouldn't ever sell Sub2 myself(I think its more viable as an acquisition strategy personally).

Your last statement leads me to believe you're looking to 'flip' properties. Why not rehab and resell?

well... you would think that would be the case... but...

this property is in a city that has no zoning, no formal way of evaluating a property and has no history of inspecting a property.

home sits on 8 different lots

further, this isnt a rehab. the corporation who bought the home upgraded beyond belief. beautiful trim, accents, original antique knobs, new cabinets in kitchen, new appliances, new texture on walls, tasteful paint in all rooms, fans in each room, 2 big ass HVAC units, foundation repaired, new roof (although an E1 tornado touched down 1/10th of a mile from the home yesterday), new windows, gorgeous flooring is original and was refinished 2 years ago - clean, clean, clean and even cleaner!

survey on file is 2 years old but have not seen it yet.

i would like to have it replatted (is that a word?) for 3 lots. 2 for the duplex and 1 separate lot on the east side that is an old, old, old homeplace with tall magnolias - I'm thinking pier & beam bungalow!

more @Nick - I like the rec for caution on sub2

@Tod

i dont know what the deal is with 8 lots#?

i think it was laid out in row type houses when the railroad came through a thousand years ago

its a peach. i just dont think anyone around has imagination to work with the property.

i called my surveyor and she gave me a ridiculously low price on a new plot survey

going well so far!

well - well - well... seems there are a few issues with the non-existent building code, city-never-heard-of-zoning-for-multifamily investment.

total electrical upgrade :|

my wrestling coach, community dude, wanna-be politician was in austin on state business today and could not give me the numbers on a total upgrade.

any of my guru colleagues here on bigger pockets have a number they want to throw out?

inspection report coming some time tonite. looking like a rescind and new price negotiation - FABULOUS!