No go on first deal and need some props . . .

[Christina R.]

Ok BP Nation, I need some mental boosting today. After 6 months of reading BP, going to meetups and REIAs, finding a super-sharp investor-friendly realtor, investigating money sources, etc., I made an offer on an MLS listed property that needs some rehabbing and ended up getting it under contract. This is in Baltimore City in an area with investor activity for buy-n-holds. I thought I had the MLS sold comps to support the amount requested but came back from Thanksgiving week in Florida to discover that my lending source was using specific block data that was on the opposite spectrum of the comps within a 1/2 mile radius of the target property.

I did have an inspection contingency in the deal as my realtor recommended it with this being my first dip into the investing pond. Termite damage is extensive as well and long story short . . .I'm going to be backing out of this deal.

This property would have exceeded the 2% rule. The issue is that we just didn't have quite enough to come out of pocket and feel comfortable. Even if I went to renegotiate the price the HML still wouldn't probably wouldn't have funded me. I know logically that this is probably the best thing as I feel this lender is reputable and honest. My thought is there are deals out there and if this was meant to be, it would have . .. to keep plugging along and saving cash . . .

Emotionally I'm just upset and want some reassurance that this is not the end of my real estate world (I know it's not, just boo-hooing today) . . .

AND - please advise me on things to do the next time around that I may not have thought of this time.

Thanks for your support,

Christina

[Nicole A.]

Hi Christina!

There will always be another deal!

Could you share the numbers? Asking price vs what you got it for under contract. Your comps compared to the bank's comps. Rental income? Current tenants in place? This is for buy and hold?

If buy and hold, I know this is a forever-going debate, but I'd suggest Baltimore County rather than the City... there are more rules and hoops to evict a nonpaying tenant in the City.

Also!! Have you looked up the recent water bills for this property? I think I shared that link with you privately. City water bills tend to be pretty high. How about the cost of the property taxes?

If you want a duplex in Baltimore County, I know a landlord selling. PM me. You won't even really need your buyer agent unless you want to use her. ;-)