House #34: First Contract

July 8, 2012 · 0 comments

Despite the fact that I can’t actually sell it for another 10 weeks or so, The Mirror House is now under contract…

A landlord friend of mine really wants the house, and is happy to wait the 90 days after my purchase (this was one of the short sale restrictions) to actually buy it. I’ll be working with him to get it fixed up and ready for a tenant during the 90 day period (he’ll be paying for the renovations), so that it will be ready to be rented the day he buys it.

Ultimately, I’ll only be making $4-5K on the deal, which isn’t much given that my cash is tied up for 3 months, but since I won’t have to do much work or spend any additional cash on the deal, the return should be decent (about 12% ROI in 3 months).

We expect to close on this deal on Day 91, which will be September 18…

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