Hey BP members! Tomorrow I'm closing on my 4th property since joining BP.
This one was tremendously difficult to close and has taken nearly 6 months to close.
This property was a bank foreclosure. My first offer was rejected and the bank accepted another offer. The duplex was off the market for nearly 3 months and the original buyer was unable to close on the deal (apparently couldn't get financed). It comes back on the market and I make an offer and it's accepted. The listing agent then drops off the face of the earth for 3 weeks, and we end up going through his broker just to get a response to the offer. Several more months and loads more issues later (no issues with the duplex, mostly issues with the selling bank and listing agent) and we are finally closing tomorrow.
The property is a duplex. It is 3br/2BA each side with attached garage. The property also has a detached 2 car garage with seperate storage. One side is rented out already. I have my contractor lined up to do some maintenance work and repaint and we will be ready to rent out the other side.
Here are the pics.
Very good looking property! Care to share the numbers?
I've had some deals that were good to go and died at the closing table.
Congrats on your successful purchase.
The property looks very good for a foreclosure. Was this actually a foreclosure though or an REO? Foreclosures go through an auction process generally. If there are are no successful bidders at the auction then typically the finance company/bank take ownership making it an REO property.
Looks good. I don't like vinyl siding and we do not use it anymore for new builds here.
The vinyl gets cracks in it form baseballs and rock flying from the lawn mower.
The wind can peel back pieces as well.Even if you have extra pieces to replace the color is off from years of fading from the sun hitting the vinyl so the colors do not match up exactly.The vinyl starts warping and buckling as well from the temperatures.
Your vinyl looks in good shape though but eventually you might have to go with a hardi-plank in the future.
Brian Hoyt Thanks, I think it really is a great looking property too! I'd rather not share the numbers, but I will say the property will be an excellent asset and will cash flow very well.
Charles Perkins You're right, my mistake. This was an REO property. Of course it had gone through foreclosure previous to that.
@Joel Owens I'm with you on the vinyl, I don't like it either. In fact you may not be able to tell from the pictures but there are already places where the vinyl is buckling and this property is only 6 years old. Also the soffits were either not installed properly or are of a poor quality because they are falling off in some places, which you might be able to see in the picture of the detached garage.
Hard-Plank with a crew paint,caulked and sealed for the size would be about 8,000.
If the vinyl gets real bad in an area you can replace with hardi-plank one exterior wall at a time and paint to match up to existing vinyl.
I find investors also do this with apartment buildings with cedar wood siding that rots.Just replace the first front,back or side of the building with hardi-plank.
If you can afford to do it all at once is best.The benefits of partial over time is less cost today but the negative is material is likely to be more expensive in the future but cash flow from rents will likely be more.
Congrats, Joe! I hope BiggerPockets has been helpful to the cause.
Originally posted by Joe M.:
... In fact you may not be able to tell from the pictures but there are already places where the vinyl is buckling and this property is only 6 years old. Also the soffits were either not installed properly or are of a poor quality because they are falling off in some places, which you might be able to see in the picture of the detached garage.
The vinyl buckling is usually due to the nailing being TOO TIGHT! The nails are supposed to be a little loose to allow for expansion and contraction of the vinyl "planks" with temperature. So loosen the nails a bit to solve that.
The soffit pieces are often cut too short, so that they don't stay put. Either replace with longer pieces or find a wider end channel piece.
Very nice indeed. Love the duplex arrangement. It looks to be in great condition. Congrats!
@Steve Babiak thanks for that tip Steve, I'll try loosening up some nails and see if that helps. The good thing about the sofit is the previous owner stored all the left over building materials in the detached garage. I have a treasure of construction items in there, including a full box of new sofit strips (along with floor joists, spare windows, doors, paint, concrete etc. etc.)
@Michael Harrison I really like the layout of these duplexes as well. It's a corner lot and the the grade of the land made it erfect for a tucked in garage and finished walkout lower level. That's how they were able to build a 3rd bedroom and a 2nd full bath in each unit. Also there is a family room downstairs so this duplex has both a family room and a living room in each unit.
This is the downstairs family room in one unit
Here is the upstairs living room in another unit
One other thing about this duplex. Both units have PEX plumbing. I've never worked with PEX before. Anything special I should know about it?
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