Las Vegas Deal Coming to Market SOON! Don't miss this one! 15%CAP

[Robert Adams]

I have this deal in escrow currently and will be closing on or before Nov 13th. It will take me about a week to rehab it, put tenant in place (tenant is already lined up), and then relist for $37,000.

1. New sales price will be $37,000. List price will be firm (non-negotiable), priced to sell below comps and Zillows Zestimate of $49k.

2. 6% Co-op if closed on or before Dec 24th 2015 (otherwise 3%)

3. Should have a tenant in place at $600 mo (meeting with tenant later today to solidify) so there should be no vacancies to account for.

4. Unit will be rehabbed and in move in ready condition needing no repairs to account for.

5. It will be a traditional sale that can close quickly with quick responses. 

6. Using the 50% rule for expenses will give this unit a 10% CAP rate but this number should actually be much higher since there will be no repairs needed or vacancies (closer to 15% CAP rate).

7. There are only 2 other units for sale in this neighborhood one at $31k which is a short sale and unable to close quickly, it also has $3,200 in liens that must be paid off, because it is a short sale the closing costs will probably be about $1500 more as the lien holder/bank will not pay for the CIC fees or Transfer taxes, and this unit needs to be rehabbed. After calculating for all of that it will cost more than my unit at $37k and will take longer to close and the buyer needs to calculate for vacancies since there is no tenant as well as the needed repairs. The second property in there is listed for $37k same as mine but it needs to be rehabbed and they are asking the buyer to pay the title fees as well as the transfer tax. This will push the purchase price to be higher than my unit and then in addition to that it is vacant so you will need to calculate for vacancies as well are repairs.

Long story short my unit is the best deal in this neighborhood and has so many perks it is an investors dream! Should be an easy sale. 

[Robert Adams]

1. Day 1 December 21, 2015 ~ We closed escrow on the purchase. We also had been discussing the purchase with an investor prior to our purchase. As soon as we closed on it, we put it back in escrow the same day. The investors offer was contingent upon him viewing it once it was rehabbed. The EMD and buyer's due diligence period was to begin after the rehab was complete.
2. Day 2 December 22, 2015 ~ The rehab/demo began. I also contacted the future tenant and explained that the rehab has begun and that he should be able to move-in in about 5 days.
3. Day 3 December 23, 2015 ~ We tried to get as much of the rehab done as possible since Christmas was quickly approaching. We also worked diligently on getting title all the info they needed so they could update the prelim, get the HOA name transferred to us, so Title could get the updated HOA demands on time for close. After sending the HOA the updated deed we also paid an extra $50 to put a rush on the HOA demands so we could close on time.
4. Day 4 December 24, 2015 ~ There was a half day of rehab done on this day due to the holiday. The tenant submitted a rental application.
5. Day 5 December 25, 2015 ~ This was Christmas and everyone took the day off.
6. Day 6 December 26, 2015 ~ This was the last day of rehab. We prepared the unit to be shown to both the new tenant and the new owner.
7. Day 7 December 27, 2015 ~ The tenant viewed the property and gave the green light. He signed the lease agreement for one year and gave a $600 security deposit. I gave the tenant the last few days of December for free and he is expected to pay the first months rent to the new owner on January 1st. The buyer came and viewed the unit now that the rehab was complete. He approved the condition and rehab and we instructed title to get everything together for the final signings.
8. Day 8 December 28, 2015 ~ We completed the files for both the buyer and seller. We went to title and signed on the seller side.
9. Day 9 December 29, 2015 ~ The buyer signed and wired the funds.
10. Day 10 December 30, 2015 ~ Title was recorded in the new owners name, the security deposit was transferred to the new owner, and the deal was DONE!
11. Now we are on to the next one.