2/15/17 - First Offer Is In!!!

Wednesday February 15, 2017

I’m exhausted. Kyle and I put in a day and half today. I’ve been going since 6am with hardly any breaks. But yet I’m still excited and ready to go.

I did my morning routine this morning despite my desire to stay in bed and do nothing. Sometimes it’s just hard to get out of bed. But, I got up and accomplished my morning routine and then quickly headed to my office for the day (Panera Bread).

I hadn’t journaled in a few days and usually I start my work day with a 20-minute journaling session focusing on what’s bothering me in life. That way I release the negative on to something tangible so it’s not just floating around in my head. I then write about what’s positive in my life to build new neuropaths so my thinking is more positive. So I did that this morning and I always notice a large difference in my days.

Kyle and I had met last night and discussed which houses he was going to run comps on and schedule showings for. He met me around 10, we went over the comps, and then set out to see a property. We were aiming for 3 but one of the houses wouldn’t get back to us. The first house we saw was interesting. It was a 3/2 but there really wasn’t a master bedroom and the three rooms shared a hallway bathroom. The second bath was on the other side of the house. It poses a challenge from a design standpoint and a potential hurdle for sell but overall we liked the property and used a rule of the thumb that we think is conservative to estimate the rehab cost ($35 a square foot). That left us with $45k in rehab costs and after subtracting closings costs we came up with a conservative ARV based on comps.

We then saw another property, hated it because it was so close to a highway and they wanted way too much, and headed back to Panera Bread.

And that’s where we made our very first offer. The offer is in and we are awaiting their response.

List: $89900

ARV: $150000

Rehab: $45,000

Closing Cost: $6750

Desired Profit: $15000

Max Offer: $83,250

Actual offer: $80,000

Please, please tell us what you think about our rule of thumb rehab cost estimate! We understand once we are under contract that we need to verify. We are going to have a GC come with us and help us out with quotes. But any feedback on any part of the process would be tremendously helpful!

Finally, Kyle dragged me to a boxing class tonight and, my word, was it intense. I thought I was going to die LOL! But I made a commitment to focus on my physical and mental health this year and that’s another step in the right direction.

Lots of positives from today. It isn’t always easy but we are staying disciplined and taking the emotion out of it by planning and committing to certain tasks at certain times.

I’m tired and hungry. More to come tomorrow! Wish us luck!

-Chris