Cleared to Close!

[Wesley Thompson]

Closing on a home in Chattanooga, TN next week! It hit the market for $105,000 and I knew it'd have a lot of interest so I made an offer at $110,000 and it was accepted! I expected it would need no more than $30k in renovations but after the inspection and contractor quote of $45-60k; I figured it wouldn't work numbers-wise. I was under pressure to make a call due to the inspection contingencies and didn't have all the information I needed to make a clear decision. I told my agent I needed to be at $90k and the seller returned at $95k; I told my agent to terminate the contract. My amazing agent sent me an email essentially stating that I'm an idiot if I don't purchase this home for under $100,000. I was uncomfortable staying in the deal but wanted to stick to my $90k offer. The seller accepted! Then, the appraisal happened and the home is currently valued at $112,000! That's $22,000 in value my partner and I have the moment we close! We're going to renovate this property and it's going to provide a safe and comfortable home for a tenant! ARV is $180,000 conservatively with some comps over $200,000 so this should be a win!

[Wesley Thompson]

Quote from @Alex Bekeza:

@Wesley Thompson Congrats!  How long before you think you'll have the place renovated and leased?  Do you already have a plan for the exit refi?

Renovation begins next week should be complete by end of May, barring any surprises. Exit refi will likely be a DSCR so we can recapture our equity. Haven't committed to anyone yet...