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Monday, May 24, 2010

Analysis of a Bargain: 2056 Orchard Ave.



This week I closed another profitable investment grade property with a client.

The previous owner of this property borrowed $87,000 against the home.  It is currently a 5 Bed and 2 and 1/3rd bath configuration.  This home boasts the only 1/3rd bath I have ever seen.  It has a closet that was converted to a shower and a toilet...hmmm.



The property came on the market back in March of 2009 at a retail price of $94,900.  The home was definitely not in retail condition and so gradually over time the price was lowered.  In December of 2009 I placed an offer on the home for $53,000 when the price was reduced to that point as a short sale.  However, the bank that was approving the short sale declined the offer.  In February, the agent called me back and said the bank would approve $53,900. I notified one of my clients and we made that work.  After 90 days in the the short sale approval mill, we finally received authorization to close.

I estimate this home will be worth $110K-$115K post fixup.  It will look great and make a handsome profit when completed.  Stay tuned...

1 comment:

  1. This will make 3 remodels on this street in a very short time frame. Very cool.

    ReplyDelete

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