Little flicker 2 years ago, now I’m ready to be on FIRE!

[Andy Bailey]

About two years ago I began really searching for deals, viewing homes, and talking with local small time investors. I was ready to roll, then my flame turned into a pilot light... not out, but not burning either.

Fast forward to today; a man sized 12 year old son in middle school, a newly and beautiful adopted little 5 year old girl from China, a wonderful wife who quit her job to raise our family, and dad here working all the overtime available. Whatever it takes right!? Right... but it’s time to change course and start firing on all cylinders.

I have done quite a bit of remodel, upgrade, repair and rehab work on my own primary homes as well as my father in law's SF rentals over the last 15 years or so. I know the area, have come to learn the value in dollars spent as it pertains to a ROI, at least from a rental point of view.

Now, here I am. I'm ready to pull the trigger. I've done the research, read countless BP posts from some very insightful individuals and have swallowed most of my fears. I have viewed and ran numbers on a handful of homes in the last few weeks. I have narrowed it down as a first time purchase to a 2/1 solid home; good location for same size homes, brick/vinyl ranch, built in 1940, HVAC installed already, original hard wood throughout home, roof in great shape, wiring up to date and plumbing is manageable for repairs. It does need some paint and updating but I figure that renovation costs should be less than $8,000. It is on the market as a foreclosure for $43,900, and I have made an offer of $30k. I have access to a 100% loan from a close associate with interest payments of 4.25%/month until home is sold (I am seeking to flip). I also have a 15% down 85% finance at 4.75 opportunity through a local bank specifically for REI. The foreclosure was for $59,600 and tax appraisal is at $63,400.

So recap

Market listing $43,900

Tax appraisal $63,400

My offer. $30,000

Renovation. $8,000

My question is based on these numbers, if I could guarantee a done deal at 35k, am I crazy for allowing a little time to play out with a 30k offer that may or may not be accepted or countered (this is a bank owned property)

If you read this far THANK YOU!! And sorry for all the backstory... but it’s my story and I feel it’s important and relevant to my itchy trigger finger scenario.