Buying & Selling Real Estate Discussion

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Luke Harrison
  • Rental Property Investor
  • Randolph, NY
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I made a good mistake!

Luke Harrison
  • Rental Property Investor
  • Randolph, NY
Posted Sep 8 2019, 05:47

My fiancee and I are long term buy and hold investors in a small market, and were looking to add another property to our portfolio. We have a private money investor backing us so we were able to make an all cash offer. We were on the hunt for a duplex nearby one of our other rentals. 

So the mistake you ask? We found a property we liked, and made our all cash offer. This offer was accepted without any negotiation. This as any investor knows is a tell tail sign that we offered too much. 

What's the good in this mistake? It is still a good deal. The sellers were asking $65k, we offered $55k cash subject to inspection. After inspection we requested that work be done before closing, the sellers did $8,000 in electrical work, and some roof, and venting work. One unit is already rented for $550 a mo. Which should be raised to $600 within the year, and the other unit is vacant, and we will be asking $600. Which surpasses the 2% rule.

So in closing I feel that even though we had our offer accepted without rebuttal, I feel that it is still a great wealth building deal for our portfolio, which will cashflow immediately after closing in about 2 weeks.

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