Last week I wrote about how I adjusted my strategy to better compete with professional investors. Well, it seems as though it’s worked! My very patient Realtor send me a one line email this morning that read, “Congratulations we have a deal! I will have a signed contract back to you today!”
My response? “Well, I guess we should go check out the property to see what I’ve gotten myself into!”
The property in question is located in a working class suburb with a decent school system. I know the area well as I lived just a few blocks away until I was six. It’s not the most ideal neighborhood to flip as property values have not recovered materially since the real estate crash, so we intend to rent this one out.
Since I haven’t walked through the property, fingers crossed the rehab is only cosmetic.
Photos after the jump. You say dingy, I say opportunity 🙂
Seller recently updated the siding. Cute!
Cabinets were recently updated, but I’m not a fan of the color. Replace or stain?
Cute built ins! Carpet has to go!
Ugly now, but looks promising!
For the last several months, my process has been such that I would look for properties on Zillow or the local MLS Mon-Fri and have my Realtor schedule showings on Saturday or Sunday. Of the 5-7 properties we’d see most weekends, 2-3 would fit my acquisition / rehab criteria. From that short-list, I’d submit a bid on the best candidate – all cash, 5 day contingency – and then wait to hear back. More often then not, I’d get the following response from the selling Realtor: “We received your offer and Seller has it. There is another offer on the table from another Realtor.” Well damn. I’m now the backup offer. And since the other investor ahead of me is likely a Pro, it’s unlikely that the deal will fall through. From there, I’d place a bid on the #2 property on my list. Same thing…too slow. Then #3 on the list. Same thing…too slow. See a pattern?
Rita Mae Brown noted in her novel Sudden Death that, “Insanity is doing the same thing over and over again, but expecting different results.” Too true – this whole process has driven me insane over the last several weeks. So, new strategy! Bid first, ask questions later.
I’ve seen enough properties over the last several months to know what a property at a certain price point should look like. Not only that, but most Cleveland suburbs require pre-sale inspections which list any major updates / fixes that need to be made within six months of title transfer. Between the two, I have a good sense of what I’m getting into.
So, in the interest of not perpetuating my insanity, I just sent my Realtor bids on two properties. If the talks go well, I’ll go see the properties. If not, I’ll submit more bids. All told, I currently have three bids outstanding. Here they are: