JUST SOLD! Super-Bargain Fourplex

I just closed with a client on this bank owned fourplex in Ogden at 2364 Jefferson Ave.  It suffered from a fire about 8 years ago and has been totally rebuilt inside.  The structure is 4100 SQFT with 3 three-bedroom units and 1 two-bedroom unit.  Rent rolls should be close to $2,500.  Our purchase price: $166,515.  It's an excellent cash flow property with immediate equity upon purchase.

This one took us a while to nail down.  It was listed at $158.000 back in May.  Given that the price was significantly below market value (even in our illiquid marketplace) I recommended that my client offer full price.  The listing agent then notified us that we were in a multiple offer situation...which wasn't a surprise.  I advised my client to offer $175,000.  Our offer was accepted.

Then began the long slow haul to get it closed.  The seller had paperwork to handle and it took them almost two weeks to get a signed contract back to us due to confusion over where and to whom we were to make the earnest money out to.  Our inspections were completed by the time the signed paperwork arrived in mid June.  Our inspector discovered a significant amount of mold in the basement.  We received a written bid for the remediation and a verbal bid for the replacement and repair to put the unit in operating condition.  We asked for a concession in price based on both for about $9,000.  It took the seller a few days to respond and they asked for a full bid including both remediation and repair.  It took us a couple more days and we submitted it to the seller.  The seller took several more days and then came back asking us why the two bids were different.  To add to the confusion, the listing agent's assistant was on vacation and handling business through her phone. 

The day before our settlement deadline on the 15th of July, the asset manager at the bank recommended we scrap our original contract and start over because the seller's paperwork process for handling our concession was too time consuming.  We agreed.  It took the seller three days to get a new signed contract to us and two days later we closed.  Whew!