Property Number #16: debrief Smell like curry
Another one came from the wholesaler that I like. And man, the whole house smell like curry when I arrived. I don’t know if this is the main reason why I have no competition or not. After some negotiation with the wholesaler, I was able to lower the price from 89k to 87k and decided to move forward. I don’t see a lot of repair during the walkthrough and expect to spend less than $5000 for the rehab. Unfortunately it was never the case so far when thing go toward my favor…
Financing: 20% with commercial mortgage at 4.8%
Repair $10,000 (The AC blew up together with other major surprise in the house
Rent: $1275
ARV: $120,000
What is happening to this property?
2015 update: I was grateful that the seller left the house clean and did not left me with any trash. However, he also took all the windows blind and the stove with him. I wasn’t expecting the stove to be taken so I didn’t budget for it. The stuff that he left: the Microwave and the dishwasher unfortunately did not work as well. I didn’t check these item because they are high end item (kitchen aid) so simply expected it to work. It was a big mistake here. Also the AC unit that I was expecting to spend less than 500$ to repair turn out to be a $4500 job. I was very surprised that the seller lived in the house with no AC in the middle for June in Houston. The outside unit was broken, inside was also gone and the system has no duct!! I spent what I needed to spend to furnish the kitchen and brought in a new AC unit.
The house then quickly leased for $1275
2015 update #2: I painted the front of the house yellow and the HOA is giving me grief. They continuously sent me letter and stated that color was not approved and I needed to repaint the house back to the ugly gray color. After a couple unsuccessful email and phone call trying to convinced them. I decided to…ignore them. So far I haven’t heard anything from them but who know what might come up next. More to come on this topic with the HOA later….
lesson learned in this debrief:
I will star adding this lesson learned section in all the post…more to come on this later
