So...after losing out on 4 properties for various reasons...we are about to bite the proverbial bullet! We have looked at more than a dozen properties, found 2 rentals we wanted but by the time we found an insurance company that could actually get us decent quotes they were both gone! Then we found 2 HUD properties that we wanted. The first one was gone during the owner occupant phase of the bid process and the other one we did actually bid on but did not get it. There is one left on our list of favorites that I feel certain we can get. Has been on the market awhile, has had several needed repairs and updates and unless an inspector says different does not need any majorl rehab just some cosmetics. I think we can get all in for $27,000 (at least that is our max) and depending on the appraisal we may not even have to put any money down on it. The rent for this house in this neighborhood will be around $525 so after mortgage, taxes and insurance the gross cash flow will be about $165 per month. We don't plan on taking any of that in profit but saving it to build a reserve for vacancies, maintenance and then once that is built paying extra on the loan to pay it off early. I know these are tiny numbers by most folks standards, but it might as well be hundreds of thousands for us! HA!!! Any last words of wisdom before the make the offer?
If you snooze, you lose. I love buying cheap properties, but I usually make an offer within a few minutes of looking at them. Know your market, your costs, your rents, how a house is put together, make fast decisions. Investors get it done quick. Have fun.
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