I have monitored this site for over a year but have never posted until today.
I have bought and rehabbed several homes over the past several years and am about to do it again, but need some advice on a wrinkle that just came up:
bank-owned home that I put under contract for 57,500. the home needs a full rehab. My financing is a construction loan. Upon completion, my intention was to rent out the home. I am tired of selling them and this house is in a great rental area. (it will rent for 1200). Total cost to rehab is about 35k.
This was my plan; here is the wrinkle:
I have been to the house 4 times now to walk through the house with my trades. Each time that I am there, there have been others stopping to look at the house. The MLS hadn’t been updated to show that it was under contract yet. Last night, a gentleman stopped to look. I explained that it was under contract and what my intentions are. He asked me if I would be willing to sell it to him as-is.
He offered (cash offer, no financing required) $68000; no agents to sell to him (it is a solid project for the area).
What do you all think about this? On one-hand, I think that it is a great project that would put me where I want to be. On the other; there is money to be made without having to swing a hammer…
Also, I have never done this before, and don’t understand the mechanics of how to set up a simulaneous closing…Obviously, I know my way around a purchase agreement, so writing the deal is easy. My closing is set up at a law office; maybe they can help?
Give me your opinions, folks. I need a sanity check on this.