I found out that the property was purchased, probably as a total rehab job, for only $24k. How much could that have possibly put into it. Even if they put in $30-50k, they're crazy to expect to make over $125k on that kind of a deal.
All it takes is one ignorant newbie and they will make their $125K. Fortunately, THAT’S NOT YOU!!!
Mike
Jared,
This reminds me of how a sellers agent tried to tell me that the $299K list price of a property was a “no-brainer” because the rents would cover the mortgage.
From Carelton Sheets:
“If you don’t feel a little embarrassed by the amount of your offer, you’re probably offering too much.”
You owe it to yourself to pick up propertymanagers book if you haven’t already. It was eye-opening and helped me get a better deal on my first property which I’m due to close on next week. Sometime after the close I’ll post the story.
JP