Almost bought with emotions

[Chris Sukala]

I almost bought an auctioned property with emotion but stopped myself. I ran the numbers for both a flip and a rental property through the BP Calculators the night before. We were really excited about this house and  wanted it. This house is in a B+-A neighborhood, it would have appreciated quite well. However being an auction couldn’t get in.

The bid Started at 81k and rapidly moving up. I jumped in at 90, where some started dropping out but we stopped at 100,500 and It sold for 101k. I had the money to go up to110k. However per numbers in the calculator I would have had to pay around 90k for a rental at 1375 a month cash flowing 10 bucks. If we did go up higher we knew we would have a tenant ready to move in for 4 years but that’s the highest she could go. She is very OCD so I knew she would have kept it nice. Good new is she will move into another home of ours for same rent that we at one time contemplating selling.

We thought of flipping it for around 165k also, if this was the case, I would have had to buy for around 95 and possibly profit 40k. Sure I could have decide to profit less but 40 is what we were eyeing.  Both scenario was putting about 10-15k into it. Comps are anywhere from 140-180

My gut wasn’t feeling it so We stopped chasing it. Maybe we were foolish we will never know.

Sorry if there are no paragraphs. Sometimes the mobile app bunches everything together.