My 'disaster purchase' finally closed

21 Replies

This is the story of my Charleston house.

I bought the property sight unseen for $52,000. It was right on the water in downtown Charleston so it seemed like a stellar deal. How foolish I was.

Actually those amazing water views also brought with it high chances of flooding. It also happened to be in the one area that is still ghetto, although so close to trendy places.

After buying it, every local realtor and handyman informed me what a terrible purchase it was. Quotes for the repairs ranged from $10,000- $50,000, the major issue being problems with the foundation. I ended up paying $12000 for repairs including HVAC.

It was then listed on the market at $88,000 with almost nil interest. Realtor suggesting rent it out. Good tenants were placed with gross rent of $1200.

Property manager calls me frequently worried about the house washing away in the next rain. He tells me I'm definitely going to lose money when I sell the house. I refuse saying I've made many, many mistakes but never lost money. He says this will be the first house I finally lose money on.

Several months later an article makes front page that it's the hottest new area for real estate investors. Property is listed that week for $99,000. Offer comes in at $90,000. Property goes under contract and then buyers financing doesn't come through after bank does inspection.

Then another offer comes in at $85,000 cash. I accept and finally close on the deal yesterday. Yep, I came out on top yet again.

Moral of the story- I'm a very lucky person.

Originally posted by @Jon Klaus :

Congrats on getting it sold. What would you do differently if you were going to do it over again?

 Not buy sight unseen! I have officially banned myself from this practice. I did it for 5 years mainly because I was living on the other side of the world but no more!

Originally posted by @Nat Chan :
Originally posted by @Jon Klaus:

Congrats on getting it sold. What would you do differently if you were going to do it over again?

 Not buy sight unseen! I have officially banned myself from this practice. I did it for 5 years mainly because I was living on the other side of the world but no more!

 Good!  Did you sell the Las Vegas quad?  

Originally posted by @Jon Klaus :
Originally posted by @Nat Chan:
Originally posted by @Jon Klaus:

Congrats on getting it sold. What would you do differently if you were going to do it over again?

 Not buy sight unseen! I have officially banned myself from this practice. I did it for 5 years mainly because I was living on the other side of the world but no more!

 Good!  Did you sell the Las Vegas quad?  

 Thanks for asking Jon. It's still on the market. I had a great offer which unfortunately fell through. Hopefully soon.

Nat where were you living before?  Did you always intend on living in USA?  Just asking because we invest from the other side of the world and rather fancy being able to work from anywhere.

Originally posted by @Linda Quinton :

Nat where were you living before?  Did you always intend on living in USA?  Just asking because we invest from the other side of the world and rather fancy being able to work from anywhere.

 Linda, I was living in various Asian countries. I bought properties online like it was a chess game when I stayed up late at night.

It can feel like that can't it, and the late nights.... wowsers they are tough.  But still love the game.  It sounds like you have been a lucky winner every time which is fantastic.

Originally posted by @Linda Quinton :

It can feel like that can't it, and the late nights.... wowsers they are tough.  But still love the game.  It sounds like you have been a lucky winner every time which is fantastic.

 'Lucky' is a good word. I was probably always a winner because I bought at the bottom of the market. The major window of opportunity has somewhat closed now.

I think you'll continue to come out ahead on anything you are trying to sell that you bought prior to 2014, even (or especially) the LV four plex.  I don't think it's all luck.  You're buying in the same areas a lot of people are, but sometimes you are getting there first. Buying units in low valued props in metro areas with a lot of out-of-area investor action is bound to be a game of musical chairs.  The music is still playing in some markets.  The test, IMO, is the stuff you buy today. If you buy today, can you get out tomorrow for the same or higher.  

But it shouldn't matter too much, since you're buying for cash flow now, right?

Rather be lucky than good anytime - at least in the short term

Congratulations on having perseverance, and not letting negative people get you down.

My dad used to tell me "luck is nothing more than preparation that met opportunity."

Originally posted by @Scott Lewis :

My dad used to tell me "luck is nothing more than preparation that met opportunity."

 Your Dad sounds like a great man.

@Nat Chan   Congratulations... things tend to work out for those that work hardest. It's definitely not luck... Good job.

[email protected] | NJ Agent # 0565737 - NRS REFERRAL SERVICES, LLC

@Nat Chan  Let me know if you have interest in other properties in Charleston.  I worked as a remodeler for 24 years and I am now flipping houses in Charleston area full-time.  Let me know if you need some "eyes" or a partner in Charleston.

Medium cac hb logo copy 2Russ Scheider, Charleston All-Cash Homebuyers | 843.302.1936 | http://charlestonallcashhomebuyers.com

@Nat Chan

I know that townhouse.  In fact I showed it twice to investors and helped my own daughter buy a townhouse on America St about a block over and a block down.   The neighborhood is cleaning up but that street is one of the last holdouts of not-so-nice.

We never got far enough to be inspecting the foundation but I thought it might be workable as a section 8 rental.   It might also be ok for the purchaser as a long range prospect with the "digital corridor" being developed along that side of the city but "long range" is not an attractive concept for most.

Good for you for getting out with a smile!

What about the deal you had in atlanta....I think off McDaniel Street in the Pittsburg area....how's that one work out?  Luck only takes anyone so far....you must be tough and smart...we make our own luck in this world and you are obviously making yours.  Despite the global economy and a possible correction in the US & elsewhere, I expect to have my best year in 2015.  Perseverance and a good team boots on the ground is the key!

Charleston is a booming area if you hit the right deals on I am deal 7 for the year and its pretty cool.. nice to be able to sell homes to owner occ's instead of investors..

that area is really turning fast.. I have one going at 46 Aiken right around the corner its a new build and its sold for 365k  1800 sq ft.

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

Congrats Nat on closing, it seems that the best two days of owning a flip is like owning a boat." When you buy and when you sell". I'm waiting for my first to go through, and it's hard waiting for a offer.

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