Just Closed my first noo deal

I just closed last friday a 2/2 and a 1/2 town house in atlanta, that needs paint, carpet, fridge, dishwasher and kitchen floor.
It was built in 1992, fenced yard with a nice deck
It was an reo, and my agent called me right after he posted the listing.
They were reduced to 30k and I got it for 16k
Tax assessor value is 110k and I got an arv of 70k
Rent in the area is abour $800
In my mind I did great, after loosing the last 4 properties I had under contract I finally got one.
I paid cash for it, and it feels good.

I would like to rent it, but I feel that I can get 35k pretty quick.

Monday I called another investor and I told him I wanted 35k, he looked at the house and started to market for 40k. He had one of those we buy house signs.

This forum was a great resource. Thanks to everyone that post here.

Congratulations on a GREAT deal! You probably can’t go wrong whatever you decide to do with this property. However, I would seriously consider keeping the property as a rental. Assuming that you end up with $20K in the property, you will make a quick $15K if you sell it for $35K FROM WHICH THE GOVERNMENT WILL TAKE A NICE PIECE IN TAXES. Not bad! However, if you keep the property, you will have $50K in instant equity and a nice cash flow that will last a lifetime, which very little tax. Do twenty deals like that and you’re a millionaire! Keep twenty deals like that and you will have a nice monthly income that will last a lifetime. Just some food for thought.

Good Luck,


I agree with Mike…Keep this deal unless you really need to get your cash back. Chances are, in 3-4 years you will get your initial investment back plus market will turn and your equity will be much better. Since Assessor has it at 110K, chances are the TH was selling at 150+K when market was strong. Take your time and find a great tenant, someone looking for longterm maybe. People that want to sign 2yr leases or more generally are not out to destory the home since they plan to be there awhile.

Wow, what bank was this that discounted that much? And where is this property located? Just curious.


I used all the cash that I have. I am doing everything that I can to keep it. I have another home lined up that my dad is financing it for me. I need 10k down and 15 for repairs. I will be working extra hard to be able to gather 10k to close.
This house is from 74, but in a very good area all of the schools are top20 in the state. One month ago they had 3 homes for sale at 195k and today they have only one. I am hoping to sell mine really fast for 160k
I am paying 95k for it. I could rent it for 1200, but I would not cashflow.

The seller was homeq.com

property sat on the market for 4 months with the first agent , couple of days before he lost the listing they dropped it to 30k. When they gave the listing to my friend they were asking 25k. He called me the same day and we put an offer together shortly after she called me.
The property is in east Atlanta. right below east lake. Right now they have another one listed at 40k.

After six months on title, you should be able to do a cash out refinance to get all your invested capital back out.

Congratulations! Have you checked out rent to own or rent to own homes? Maybe it could be an option for you, feel free to check it out!