I Want Your Opinion On My Deal:

[Doolan Wesley]

Alright Milwaukee, Wisconsin real estate people. So I was looking to roll some of my money out of the my stock portfolio into another cash flowing property. I own one duplex in Bay View, and stumbled upon another deal in Tippecanoe, about a block in from Howell Avenue. So when my realtor and I looked at the deal, there were some foundation issues, which we wrote were to be fixed 5 days prior to close (per the engineering report), in addition the lot came with an additional side lot.

The seller wanted $30k for this additional lot, I included it into my offer for basically the property at $195k and the additional lot for $18,250. The entire deal is for $213,750 for an upper and lower that can probably fetch $1100 and $950.

So anyways, we moved forward in the transaction and the bank noticed on the appraisal that the lot division was not how it was disclosed. We had reviewed the lot, but later found that the lot was divided into 3 parcels, and not two...in addition the seller had liens on him. This finding changed the deal completely in my eyes. We just had the appraisal and the bank valued the property at $213k without the additional lot, however I'm starting to think I'd be better off taking my $60k in cash and working with a partner, finding a cash deal, and growing my cash reserves with a BRRRR. I'm not overly concerned with a worst case scenario in which I lose out on my $2k of earnest money, but I'm wondering if I should even pursue this deal or make better use of my cash.

Anyone have any thoughts? I'd love to hear from you all!