It’s been a long while since we put a new house under contract, but with about 20 offers in over the past two weeks, it was inevitable that we’d get at least a couple…
This one is going to be called The Ticket House, given that I got a speeding ticket while entering the subdivision the first time I went to the house. As anyone who knows me will tell you, I’m pretty stubborn, and if I’m going to get a ticket, I’m at least going to buy the house and make enough to pay for the ticket!
This house is actually a little bit different for us. Not only is it about 30 minutes outside the area where we normally invest, it’s also a bit higher price point. We’re purchasing this one for $80,000, will likely put between $20-25K into renovations and will resell in the $130-150K range. It won’t be a difficult project, but given that we don’t know the area very well — and we don’t know the buyers agents who work in the area — it will present some new marketing/selling challenges.
But, we’re looking to branch out our investing area this year, so this will be a good start for us…
I’ll post our rehab budget and some pictures in upcoming posts; hopefully we’ll have this one purchased and ready to start renovations in the next week or two.
{ 11 comments… read them below or add one }
wow… what a luxury 20 offers
keep up the good work!
Congratulations! I really hope expanding to a new area works out well for you! I really hope you don’t get burned!
Hi J-
Was this a short sale off of the MLS?
Hi J,
Are you going to count the ticket as an expense on your financial breakdown of this property? I guess you could consider it a purchase expense
Matt -
All joking aside, it’s on my list to speak with my CPA to determine if this is a legitimate business expense/write-off…after all, I was working when I got the ticket!
Hey Brian -
This was actually an REO purchased off the MLS.
Congratulations on the house J.
Unfortunately speeding tickets and any fines, even if they were a result of conducting business (ie. traveling salesman getting speeding tickets, investor on the way to a house, etc), are considered personal expenses and not deductible for business purposes.
Hey Sean -
Thanks for the information! I figured that was the case, but thought it was worth asking the question…thanks again for the response…
Hey J-
Worst market in the country, and you’re still gettin’ it done. Keep it up!
In Atlanta, Housing Woes Reflect Nation’s Pain
http://www.nytimes.com/2012/02/01/business/economy/in-atlanta-housing-woes-reflect-nations-economic-pain.html?hpw
Hey J Scott, great blog and thanks for doing this. May I ask who “we” is when you write? It appears that this endeavor is comprised of more people than yourself? Do you have a partnership established and if so do you mind telling us how that partnership is structured? Thank you so much Scott and congrats on your success.
Hey Irish man,
Depending on the context, “we” will either refer to my wife and myself (we are partners in the business) or to my wife, myself and our full-time project manager (we are a close knit team in business and share in all our successes)…