So I handwrote two yellow letters about 10 days ago, got a phone call from one of them yesterday. I was totally unprepared. A sibling who didn't live in the house called me and told me their mom had passed last year and they were planning on selling it later this fall after her brother and sister, who live in the house, get it cleaned out. She told me they would let me know when it was about to go on the market and like a chump I said 'ok, thanks.' As soon as she hung up I knew I had screwed up so I texted her to thank her for the call and let her know if she was interested in avoiding paying a commission and not having to worry about fixing anything that I could work an offer for her. Both points that I should have made in the initial phone call, but as the title says, I flubbed it. She said absolutely interested and to my surprise, said they also owned the adjoining quarter-acre lot they wanted to sell.
She put me in contact with the brother who lived in the house, and I called him immediately and had a terrific conversation for about 30 minutes about Lexington history, the house, what he did for a living, dementia, loss, etc.. Will have the opportunity to go over next week and look at the house and meet him and the sister in person.
I've learned my lesson, putting together a phone call checklist right now, but honestly, I think that not having a script or a checklist worked in my favor in this situation. With my lack of experience talking on the phone, I would have forced the conversation and it wouldn't have been nearly as organic as it ended up. I absolutely would have led with questions about the house, the condition, all that stuff. This is small-town Virginia, and if there's one think I've learned since moving here is that folks love to talk. As an engineer Yankee military-type, everything in me wants to get to the bottom line right away, so I definitely have some adapting that needs to happen.
The house is a 3900 SF victorian on about 1/3 acre within easy walking distance of downtown and the two local colleges, VMI, W&L. They said it's still carrying about a $30k note from when the mom refi-d some cash out to pay for medical bills. Working comps now, but looks like similar SF/lot size in excellent condition go for $350-$500k. this house is not in excellent condition..having not been in it but just looking from the outside it'll need a new metal roof, extensive landscaping and new windows. Siding looks okay but some of the trim is soft. Intent would be to turn around and either split into a duplex or keep whole, but rent for cash flow regardless. A home of that size would rent for $2000, duplex units for $1200 apiece.
Renovations run super-pricey here in Lexington, not a lot of builders and tradesman, but a lot of well-off folks moving in a building new homes, so the few builders around have no shortage of work. If you want their attention you have to pay for it. I'm trying to carve a niche by finding homes in massive disrepair and doing reno work with my own crew.
I've yet to ask what they think they could get for the place, was going to leave that for the in-person conversation. In the meanwhile, trying to work my own offer; quick math makes me think this isn't quite right for a BRRR, but maybe a flip instead?
