The reason why it seems like you are getting slammed, is because the people who know their stuff on this forum are telling you like it is. You seem to have made a few mistakes with this deal. But sometimes, that’s the only way to learn.
Garland, is like any other texas town. Im in houston and can’t imagine it much different in the dallas metro area. There are plenty of deals at 20-50% off FMV after repairs. There is money to be made, you just need to know how and where to look. If your strategy isn’t working, then you change it. If you where in Houston, I’d help you find some deals. Regardless, you shouldn’t have a problem finding wholesalers or bird dogs in dallas.
I’ve never offered 50% off an asking price, to get a house at 50% off. Makes sense? Wait for the house to get a price reduction and then make a good offer. Or you can wait for the homes that have been on the market for a while to offer less. Or just look for the right REO. Many banks will list their ugly homes at killer prices. Or go look for distressed sellers to get cheap homes.
In my opinion, if you are a ready enough to purchase a rental in this market, you should have the smarts or contacts not to have to hire an inspector. You need to be able to walk the home and gauge the repairs needed, or have a contractor walk it with you to give you free estimates. Plenty do. In all the investment homes I’ve purchase, I’ve never hired an inspector. Waste of money for me. I’ll keep that $350 and get a few nice dinners with the wife. :biggrin
I wouldn’t really call $200 good cashflow in this market, for a home in texas you are buying at $130k. You want cashflow? i just bought a home for $40k, put $5k in minimal repairs, and rented it for $950 a month. :beer
Most importantly, like EQUITY implied. You need to make sure you go into a deal planning for a worst case scenario. If the worst happens, you still make money. I remember a couple years ago, I bought a home which I thought I could sell for 105k, I ended up selling for 84k, but I still made 30k profit. Not the 50k I anticipated, but I planned for it from the get go. If that extra expense in the a/c repair are gonna hurt you that bad. You didn’t make the right offer.
BTW: Most, if not all REO properties will not renegotiate the sales price after they have accepted an offer. Unless the property was vandalized during the contract period or if the property has been stagnant for many months and your offer was the first.