Weeks 13 and 14 Accomplishments

The last two weeks I have been very busy and things are starting to come together.  The Bathroom Hole House is essentially complete and listed for sale, renovations have started on the EON House, my website has started to pay off (6 leads over the last two weeks), and all of my rentals now have tenants.

My Holdings
The Bathroom Hole House is complete and I have posted before and after pictures.  I will have spent around $60,000 on it and have it listed for $149,900.  I will post a video of the completed house in the next few weeks.  Once it sells I will post exact numbers.

Work as started on the EON house.  We discovered the house had a converted garage which was well hidden.  It has bad joists and needs major repairs.  In addition, the roof had more damage than I thought and will need to be replaced.  I also decided to replace the 22 bad windows in the house.  This will drastically reduce the potential of the house – but that is why I try to buy so cheap.  Here is a rough overview of the numbers:

 Purchase & Closing:  34,500
                            Repairs: $32,000
                                 Total: $66,500

                    Sales Price: $80,000
                Commission: $   4,800
                                      Net: $75,200
    Profit: $8,700

An $8k profit is a better than a loss but I have lost lot of cushion.  I should still make a 13% gain in less than 6 months – not bad but I could do better.  On the positive side, my initial ARV was $90,000 and the listing agent thought I could get $85,000.  The appraisal came in at $80k, but that did not include a new roof, windows, and two new AC units (the old ones were stolen after the appraisal).  If I can get $85k for the house that will be a great help.

Landlord Duties
I had to go to court with a tenant who had already left the house.  She filled an answer to my eviction because she wanted her deposit back.  Her rent check for December had bounced and she did not pay January rent.  She lied about leaving in December and mailing me the keys.  I had the unopened keys envelope fromJanuary 17th, and her power cut off notice for January 12th.  She had no case and I won a judgment that I will never be able to collect.  The next day I took a deposit on that property and we will sign the lease this afternoon.

Here are the leads from my Website:
1. Wants to sell mother’s home in another town

Asking price: $40,000.
Amount Owed: 0
Repairs: none (they say)
After Repaired Value: $55,000
Max Offer: $35,000 – repairs
This one has potential but it is far away from where I invest.  I am not familiar with the market.  I asked someone I know in the area to check it out and perhaps we will partner.

2. Wants to sell family house in a bad neighborhood

This person left some overview info on my website with no specifics.  Then he left 3 messages but I cannot get in touch with him.  I don’t know what he is asking or if anything is owed.  The house is in a bad neighborhood where I do not invest; I birddogged this one.

3. Wants to move close to job

Asking price: $113,000.
Amount Owed: $113,000
Repairs: none (they say)
After Repaired Value: $120,000
Max Offer: $78,000 – repairs
They owe too much – I can’t help.  I referred them to a realtor I know.

4. Wants to sell before foreclosure

Asking price: $50,000.
Amount Owed: $60,000
Repairs: Pool needs fill in
After Repaired Value: unknown
Max Offer: unknown
They say the lender will allow a short sale.  This house is far away from me and I am not interested in a short-sale.  I will pass on this one.

5. Another Wants to sell before foreclosure

Asking price: $30,000
Amount Owed: unknown
Repairs: unknown
After Repaired Value: $35,000
Max Offer: unknown
This house is in a bad neighborhood in another town – and they are asking a lot.  I am not interested.

6. Wants to sell fathers house

Asking price: $25,000.
Amount Owed: 0
Repairs: none unknown
After Repaired Value: $45,000
Max Offer: $25,000 – repairs
The number seems to work.  The owner went into a nursing home and his son is trying to sell the house for him.  However, the father already sold the house and is holding the mortgage.  The buyer is not paying and lives in another state.  The buyer has agreed to sign the house back to them but has not done it yet.  There are also renters in the house paying the buyer.
I offered to buy the mortgage but they want to see if they can get the guy to sign the house back.  I will follow-up next week.

The last two weeks have been busy and productive.  Its good to see that my website is finally generating some leads.

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