Here’s a general update on all the properties:
As mentioned previously, The Corn House is under a Lease Purchase contract for the next 5 months, and hopefully we’ll be able to sell it by August. We met with the buyers a few hours ago to collect the security deposit ($1500) and their first month’s rent ($1000), so at this point we’ve locked in at least $3000 on the property. Additionally, the “buyers” will be paying $1500 per month through August, with $500 applied towards their down-payment and closing escrow and $1000 coming directly to us as rent.
I’m curious as to how this will play out; the “buyers” seem like a great family, and I know they really want to be able to buy the house; hopefully they can get their credit in order in the next couple months, and everyone will be happy come August…
Tonight is the expiration of due diligence on The Second Chance House, which means that if the buyers back out of this deal after today, we at very least get to keep the $1000 deposit. (Wow, I must really be starting to become cynical when I’m expecting buyers to back out and just get their earnest money!)
The buyers have asked for about $2000 in additional closing items (a property survey and a few repairs), which given their request for very little in seller-paid closing costs is completely reasonable. I generally expect to pay $4000 in closing costs for the buyer, and they only asked for $2000; so the $2000 in “extras” really isn’t that big of a deal.
Anyway, I’m ready for this property to close. With the long rehab that ended over the holidays and the first offer that fell through, our hold time on this property is nearly 7 months, and I hate holding properties that long. While I love this house, it’s time for it to get a new owner…
I’m still amazed that we got the buyer to sign the contract on this one!
Not only that, but she drove an hour in the rain this morning to deliver the earnest month check to the broker, and she is telling everyone that she wants to close as quickly as possible. Her lender says there’s a new VA loan process that allows buyers to get loan approval within 10 days; I don’t know if it will happen or not, but it’s possible we could close on this one in less than two weeks.
While I’m always happy to sell a house, I’m going to miss this one. It’s my favorite rehab so far (I’d live there in a heartbeat), and we are constantly getting phone calls asking about it. It doesn’t surprise me that our total hold time will likely be well under three months; my question now is whether we let it go for too little?!?
The Red Garage House is about ready to be put on the market. We had our cleaning woman come in today for the final clean, and we finished up a bunch of the final rehab items (paint touch-up, smoke detectors, shelving, etc).
We’ve decided not to stage the property right away, for two reasons:
- We don’t have any extra furniture to use right now. With furniture at The Second Chance House and The DIY House not ready to be moved, we’re out of staging furniture. And we don’t want to buy new stuff, as both those other sets of furniture should become available in a few weeks;
- This house will likely sell to an FHA buyer, meaning they’ll have to wait until 90 days after we purchased it to close — which is May 14. Given that, we’re in no hurry to get it under contract, so there’s no hurry to get it fully staged.
We’ll likely finish it up and list it this weekend at a little bit higher price than we had planned, since we have a couple extra weeks before we really plan to sell it. If we get an offer at the higher price, great; if not, we’ll drop the price in a week or two as we approach the 90-day mark.
No update on The Roach Duplex. We’re still getting a few calls per week, but no serious offers. I’m in no hurry to sell this (I’ll keep it for the next 5 years, if necessary), and unless my wife tells me about the phone calls, I generally forget we even own it.
We were supposed to close on this one today, but the closing attorneys still haven’t come back with clear title. I have no idea when it will happen, but hopefully sometime next week.
Now that The Corn House, The Second Chance House, and The DIY House are under contract, and now that The Red Garage House is practically on the market, we’re out of houses to work on!
I guess it’s time to start buying again…