Rehab #10, Revere and Rehab #11, Everett – Acceptance Pending

 

Rehab #11, Everett

Rehab #11, Everett

I’m trying to play catch up with all the deals and business tasks that I have been working on over the last couple of months so I’ll be jumping around to get up to date.

My partner and I have outstanding offers on two different properties from back in June and July.  He came across both deals from a broker/attorney that he works with on a regular basis.  The attorney was negotiating the short sales on each deal when the original buyers fell through, so he called us to see if we would be interested.  As I mentioned, this attorney has worked with my partner for many years so when he calls us with a property, it likely means it’s a good deal.  My partner checked out both properties and as we guessed, they were great deals.  He immediately put an offer on both properties and the sellers accepted.  Now we’re just waiting for the bank to get back to us.

The attorney has been in contact with both banks and said that the offer on the Everett house is in line with the bank’s preapproved price and the offer on the Revere house looks like it will be accepted based on the bank’s response.  While both banks appear to be moving forward, there has been no formal acceptance so I’m not going to consider these a definite.

One of the most frustrating things about a short sale, other than the fact that they take a long time for anything to happen, is that when the bank does accept an offer, they likely want to close ASAP.  This is challenging to plan for, especially when we have multiple deals going on and our cash is reserved for other properties.  Planning and cash flow projections are crucial when dealing with short sales while concurrently working on other deals.

I only have the one picture on the Everett property for now but here are some details…

Rehab #10, Revere

This is a huge, 4,457 sq.ft., two-family house with 3 bedrooms and 2 bathrooms in each unit.  The homeowner hasn’t lived in this house for several years and the basement seems like it was flooded so we will have to do a full cosmetic rehab on the main levels and replace the mechanical systems and remove the wallboard in the basement.  Revere is an urban city close to Boston with both good neighborhoods alongside some pretty rough areas.  This can change from one street to the next so you really need to have a good handle on the area.  Luckily, this house is in a nicer neighborhood, lined with owner occupied multi-families.

When we arrived at the house, we were greeted by three neighbors who wanted the scoop on the property and what our plans were.  We almost didn’t notice all of the plastic plates on the ground until one of the neighbors pointed them out to us.  Evidently, one of the tenants who used to live there fed the neighborhood cats on a regular basis and still comes back now, over a year later, to feed them a couple times a week.  I had to laugh when I peered over at the sign on the lawn across the street that said “No Feeding the Cats!”.  Hopefully this doesn’t continue once, or if, we close on the property…or maybe we can talk him into feeding us too.

Rehab #11, Everett

This is a 1,600 sq.ft. single family house with 4 bedrooms and 1.5 bathrooms.  I haven’t actually seen this one yet.  My partner did the walk through and was comfortable with the area and profit potential.  This is in another urban city, close to Boston so one of the important factors of this deal was to make sure it was in a good area.  The property had some great comps so I was pretty comfortable basing our offer price off my ARV and my partner’s rehab estimate.  Typically, I want to see every property before making an offer because the last thing I want is to not close on a deal.  However, we only have a $500 deposit on this so if anything unforeseen comes up, it wouldn’t be a huge loss.  We will do a more thorough rehab estimate if the bank accepts our offer.

I’ll have more details on these properties once we hear back from the banks…

 

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