My First Successful Deal!

[Thomas Fosnaugh]

After making several unsuccessful offers on other properties over the last several weeks and driving our realtor crazy with low offers, we just got our first deal!

It's a homepath foreclosure 2 BR, 2 Bath ranch single family home with a partially finished basement and 2 1/2 car detached garage in Marion, Iowa (1100 square feet with around 400 square feet in the basement). Great looking wood floors that were previously covered with carpet, tile in bathroom and kitchen, crown molding/plaster walls, newer windows and roof. Backyard backs up to the local middle school playground. Really just needs some paint, appliances, and some cosmetics.

They accepted our offer price of $80,000 (will have to put 5% down) - 2014 tax assessment is at $115,000, could probably sell it tomorrow as is for $100,000 - 105,000. Our plan is to move in for a year, sell our current home with about $85,000 - $95,000 equity and start buying some more rentals. We may move or stay after a year - we could rent the place now for $900/month and could probably get $1000 - 1200/month if we finish the rest of the basement and do some cosmetic rehab.

I just came across BP a few months ago and would never have done this deal, with these numbers, against our realtor's suggestions on offer price without the information and encouragement on the forums and in the podcasts - Thank you!