We just had a great success on our first deal that I wanted to share.
We purchased a SFH for a rental in October via Auction site online. Worked our tail feathers off for 2 weeks to get it ready to rent. Went on vacation. Came back to find out that we had missed a governing document in the HOA that mandated the home was owner-occupied for a period of one year, then it had to be approved, and the rental cap was a low 7.5%! (Note: next time, do thorough due diligence when getting involved with an HOA - or avoid them! Lesson learned.)
I had a minor heart attack for about 1.5 minutes, called my husband @Bruce Mar , and he said "We'll go to plan B - sell it!" So we spent another 3 weeks making the house really pop - granite countertops, new carpet, etc, etc. Put it on the market the first weekend in January, and had three offers over asking price, and ended up closing the deal over for more than $100k over what we purchased it for.
We feel totally spoiled that our first deal went so well, and added fuel to the machine to keep investing in more properties....now we're keeping our eyes out for the next one.
Congrats! Pretty fortunate turn of events for you.
Did you pay all cash on the auction site?
Congrats, glad that it worked out for you. What is the plan for deal #2?
Wow, congrats! I love it when bad, terrible things actually end up being a huge opportunity.
Wow, looks like this was exactly what was supposed to happen for this deal!
Congrats on your success!
Congrats on your success!!!
Congrats on your 1st deal!!! its funny how life positions itself to work out in our favor at the end of the day. Good luck on your future endeavors.
Congrats!!! Sometimes option B works out better in the short term.
May the rest of your year in your RE investments be as good as the start.
Congrats. This was a good story and it is motivating me :).
Thanks for sharing and Good luck.
That's really cool. Glad it worked out so well for you guys.
to anyone that says this was beginners luck- " The harder you work the luckier you get"
What were the rehab, closing, and carrying costs?
@Tim Ryan - the rehab and carrying costs were roughly $10k. Plus some serious sweat equity, and dragging our 3 kids back and forth to the property with us. :)
@Justin Owens - yes, it was an all cash deal
@Jesse T. - we're keeping our eyes out right now for the next deal. Looking for a SFH or duplex in King County, WA. The online auctions tend to present a bunch of good deals; I also recently obtained my RE license, so we're monitoring for deals through the MLS as well.
Great flip and good job on having multiple exit strategies, or did you not plan for that and just get luck? Either way, awesome job.
Congratulations! I'm also trying to get my first deal under my belt.
@Tamar Mar Congratulations! Best success story I had the pleasure of reading today.
Congratulations on your first deal! And very successful one, especially in a hot market like King County. Good Job!
Wow... Congratulations on having a great experience on your first deal! It looks like you and your husband will be great in RE investing because you are able to think quickly and take action.
Good luck on your all your deals and thanks for sharing...
@Nathan Patterson , we followed Gary Keller's advice in his book, "Millionaire Real Estate Investor": lock in your profits when you buy the house. With the price that we bought it for, we understood the 2 options we had in play, a) rent, which is our preferred option, or b) sell, if we were unable to rent it for whatever reason. Unfortunately, we had to choose option 'b', though we still came out ahead. Now, the hunt is on to find some option 'a' properties!
So, if there is anyone in Seattle or Bellevue areas with leads on good single family or small multi-families, we're looking.
Congratulations on thinking on your feet and pivoting when you saw Plan A wasnt going to work out. That is the essence of a great dealmaker - knowing when to change strategies to make sure you reach the endzone goal - making a profit.
Good story and good lesson on why you always need a plan B.
That's great! Got any pictures??
Congrats on the success.its great that,all turned out well
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