Deal Details: The one that got away

The Basics of the Deal:

“The One that got Away” was a deal we were chasing for 90 days or more.  It was a perfect investment for us as it had two legal units and they were outstanding as the front unit was a 5/2 house and the back unit was a 3/1 over a 4 car garage.
 
The last time we talked to the agent it had just been lowered from 99K to 90K.  We wanted to get the property for 60K with an initial offer of 58K and we were willing to go to 62K.  But as the title to this report indicates we were just being too cheap!!!

This post is tough to write as we don’t like losing investments but we felt it was important to write as we lose more deals than we get as we will not over pay even for a nice deal. 

I would estimate that given the current market for every 200 listings only 5 will meet our criteria.  Of those 5 we will make offers on all of them and get 2 counters back.  We will usually end up with one deal but only at our price or we will just wait. Time is still on our side.

Expected and Initial Plan:

The units needed about 15-20K in repairs as it had some big ticket items like the need for a new roof, a new stair case to rear unit and lots of other things that added up quickly. Total rent would have been between $1,600 and $1,900.
The units would have been perfect section 8 rentals 

Actuals:

We will never know as we lost out on the opportunity to buy this gem of an investment.

Current Status of Property:

We lost this one but we are moving on as there are a lot more deals out there.

Lessons Learned:

Once you have an investment criteria you need to stick to it even in the face of a tremendous deal like the one we let get away.  It is not easy but you need to or you don’t have an investment criteria.

You will lose more deals than you win or you will run out of money.

Grade the Deal and Why:

We would have loved the deal but I am very happy we didn’t overpay.

Future Plans for Property:

We are proud of our investment criteria and how we take care of our investment capital, whether it be our capital, bank equity lines or private money.