Our next rental property (SFR + ADU) : #2

 Quick video of where we are in the process with the purchase!

Just wanted to give you a quick update of where we are today! 

We received the buyer's opening package as we opened escrow yesterday. 

The property is in Claremont Ca. 

1015 sq ft and as of now we are getting the home for $550k. 

(we are doing inspections this coming weekend: 

General inspection: $300 

(this will cover the entire property and mechanical systems i.e. : Roof, foundation , elec. , plumbing, Hvac, etc ) 

Sewer line inspection and video: $300 

Termite inspection: $0 (most companies are free) 

and lastly, the appraisal is also happening : $600 

Before we discuss any of the above: let's discuss how we found the home. 

We've had several buyers looking in the area. For about 3 months we have been driving the streets with them and falling in love with the city. Salud, my wife really likes the streets, homes and the "village" , which is the down town of Claremont and it has many quaint shops and a lot of restaurants! 

I started prospecting for off market homes for our buyers there. I found several in the past months but all the homes or sellers of homes that expressed interest in selling were priced closer to $1 million or over bc of the sq footage. Mostly over 2500 sq ft. so they did not match our buyer's buying power. 

We found this home for $500k and thought it would be perfect for one of them. The problem was that the home requires a cash offer bc of it's condition. We know several investors that have the cash to flip it, but did not want to let go of this one. We asked one of them if they could put up the cash and then sell it to us for a profit and they agreed. 

So they will be buying it for $550k and will be selling it to us for $550k (so far that's the understanding) :) 

By the way: as a realtor, we first signed the listing with the seller to sell the home for them, and we also let them know that day when we met, that we were getting approved with our lender to see if we could buy the home and asked the seller if she had any concerns with that or if that would work with her. She asked some questions but agreed. More so, because the timing of the sale would have to be flexible, as she has tenants in the property. 

We put very detail wording on the contract that would protect us in the case that the tenant does not vacate the home when they said they would and I will share that with you on the next blog post. :) 

As Realtors we can get specific lists from our title reps with homes that our clients or we would like to purchase in every neighborhood! Most investors buy these lists from companies for thousands of dollars. Some lists are good and some are not. 

We will take video and pictures of the property on Sunday on inspection day. 

Hope everything goes well! 

Sebastian M.