I just sold this fourplex property located at 1053 Healy St. in Ogden, Utah. The property was listed on November 9, 2012 for $239,900. It went under contract on December 4th with another buyer. After their inspections the property came back on the market. I had been searching for an income property for my client and we had terminated negotiations on another property right before this property came back on the market. When we saw it we pounced. We offered full price and asked the seller to contribute 3% of the purchase price toward closing costs. The sellers accepted our offer that day.
Then we started our due diligence. We found about $2,500 in repair items. However, since my client was purchasing this as an owner occupant, we didn't want to throw the underwriter off with a big laundry list of repairs and complicate the transaction any more than it needed to be. The seller agreed to a simple price reduction on these items while we waited for the appraiser to determine if there were any FHA related repairs necessary. We anticipated that there would be.
However, rather than finding repairs, the appraiser came back with a bombshell report stating the value as $225,000. That was a shocker. However, since the sellers were eager to close the transaction, they accepted a significant price reduction and also compensated us an additional $1,000 for the repairs.
After clearing a series of unanticipated underwriting hurdles, we finally closed on the property at $224,000 with the seller paying $6,720 in closing costs.
Congratulations to my buyer! This property will be a cash cow. It is close to Weber State University and the rents will cover nearly all of the mortgage payment even with my client living in one of the units.
If you are in the market for an income property CONTACT ME and let's find a cash flow property that will enhance your portfolio.
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