Offer Submitted!

Well, I didn't get my rehab finished this week. In fact, I haven't worked on it the last two days. I am planning to work on it some more tomorrow.

I ended up having some minor laser surgery on one of my eyes twice this week. Although I could have worked if I had to, I didn't have anything pressing to do and therefore I took both yesterday and today off. However, that's not to say that I didn't accomplish anything today. My realtor presented me with a bank owned 4 bedroom, 2 bath house that is going up for auction in early March. The bank is asking $57,900 for the property. I checked the auditor's web site and discovered that the bank took over the property for $20,000 (which I presume was the amount of their outstanding loan on the property). I estimate that the property will appraise for about $78,000 once it is rehabbed. The property needs carpet throughout and some other cosmetic repair. Everything else seems to be in reasonably good condition.

The paperwork that I got from my realtor said that the bank was offering the property for pre-auction sale until February 27th. Therefore, I made an offer of $21,000 for the property. My offer is all cash, close in two weeks, and contained no contingencies. I offered a $5,000 earnest money deposit. I think that there is a good chance they'll accept my offer and avoid the risk of allowing the property to go to the absolute auction.

I also looked at a 6 unit apartment building. The building had gross rents of about $2,200 per month and the asking price is $170,000. I did a little research and found that the owner paid $87,000 for it a few years ago. I will probably offer $90,000 for it with owner financing. I don't expect to get it right away, but a $90,000 offer can haunt an owner that badly wants to get rid of a property. We'll see what happens.

Once again, I'm planning to work on my rehab tomorrow.