New to Bigger Pockets!

[Michael Cardenas]

Hey all,

New member but long time listener to the BiggerPockets podcast and YouTube videos.

Tomorrow I will be closing on my first deal and needless to say I’m very excited. Not the best deal in town but I could see the potential and I just wanted to rip off the bandaid and get started.

I picked up a Duplex with and Additional Unit.

I'll be living in the ADU.

It was listed for $250k and I offered $245k Cash with the terms of evicting the ADU, One year homeowners warranty, and price reduction for any serious problems shown in the inspection.

My offer was accepted and I started the process on getting an inspection, reviewing the financials, and doing my overall due diligence.

After getting and reviewing the inspection report I saw that there are some serious issues.

- Partially updated electrical with need for rewiring the entire property.

- Partially updated plumbing with need for completion of a copper repipe and PVC.

- Stucco done in a sub par fashion

- New Roofing placed over old wood shingles

- Evaporative cooler leaking onto the roof.

- Overall outdated and ugly interior

Yes, It’s a lot. Like, a lot a lot.

That’s ok with me.

So with all things considered I asked for a $25k price reduction to $220k and they countered with $225k and I accepted.

I have a long road ahead of me to completely renovate the property but I believe I am financially prepared to hire professionals for what I can’t do and mentally/physically prepared to put in the sweat equity for the things I can do.

Thanks for reading and look forward to hearing your thoughts!

[Michael Cardenas]

@Doug Elkerman

From all of my research and all of my agents input I got a pretty good deal for it being on the MLS and considering this is still California.

I was looking for distressed properties out the gate. I have $75-100k budgeted for a full rehab and have started my contractor bidding process.

I’m hoping to spend less but we all know projects rarely go under budget.

Thanks for your input and well wishes!