Analysis of a Bargain: 2035 Orchard Ave.

I recently helped a client purchase an investment property located at 2035 Orchard Ave.  This was an interesting property since it actually involved two separate clients.  The first client completed his inspections and discovered required repairs that were beyond his desire to fix.  We terminated the contract.  I then contacted another client, told them the story about the property, and we placed an offer and finally closed. 

Here is a video of the property prior to our initial offer:



The purchase was a long time in the making.  The property was originally listed for $77,500 on September 25th of 2009.  On October 8th it was reduced to $63,900.  On October 26th it was reduced to $54,900.  On November 27, it was reduced to $50,900.  That is when I started to take notice of the property.  We placed our offer in at $50,900 and then canceled after inspections.  The bank reduced the price to $45,900 and my next clients placed an offer of $42,000.  After inspections, we were able to get the bank to reduce the price another $1,900.  We closed at $40,100.  Here are the price points in time line chart form:

 

We estimate that post fix-up value on this property will be somewhere around $85K-$90K.  Stay tuned for before and after videos when my clients are done.