All Forum Posts by: Shelley F.

The second REO that we successfully bid on ( there were others that beat me out in 'highest and best' on a few others) is a really nice house. Its also a 2/1 and in really nice shape. I made a bid, they asked for highest and best, I made the exact same bid. Got it. Makes me wonder how much lower the other investor bid. This one was clean, in good shape, and seemed to only need paint.
Hah...I now have learned that 'only needs paint' means plan to spend 5k...and not just on paint.
We put in new doors as the old ones were warped, a new huge front window (found a great replacement at Habitat for Humanity in Chico for 60 bucks for a 60-50) and Im replacing a broken countertop that is 12'long.
Then...paint inside and out...some landscaping.
The goal is to have it ready in August to rent. I take section 8 but screen carefully. I originally said NO section 8 but a friend up there pointed out that many decent folks lost their jobs and are doing whatever they can to make a living , and many are recieving assistance.
Sorry for a long rambling post, a lot is going on.

BTW...on that big workshop with 3 phase...we decided to NOT fire it up as the utility here wants a HUGE deposit. I kept posession of the shop...it stores all of my 'craigslist' finds to help rehab the others. I got a whole set of nice kitchen cabinets on cl for free...they are stuffed in there just waiting.

Although I have put in several offers on REOs, I have only successfullyt bid on two. Every single time I was drwoned in paperwork, all of which I read. Im thankful to be a fast reader!
The first was a 2/1 , Nice big lot, big workshop in back with 3 phase wiring. House from the 40s, big rooms, an early ranch or a simple post war type house. I was expecting this one to be like a more conventional deal. This house hasd good bones but an apparent mold issue in the only bathroom and plumbing/wiring issues to boot.(When I bought my first investment houses in the 70s nobody knew the term REO) and was shocked to have my offer accepted...and then they accepted 2 more offers! Then we were all put to 'highest and best'.
Even though I had an all cash offer and no inspection needed(My husband did that) I was still beat out.
Since that was my 'first' house I was pretty amazed and let the realtor know I was still interested if it fell out of escrow.
She assured me it wouldnt and that indeed they were inspecting it that very day. Guess what...they passed.
So...we resubmitted our offer and it was accepted.
FAst forward...we have a good local 'crew' (we are 3 hours away) so we rewired/replumbed/new appliances and paint.
Its rented now at 650 mo. I had never heard the 50/2 % rule, but it sure fit here.
More on the others later.

Thanks Kevin, What area of Sacto are you investing?

After lurking for about 6 months, Ive finally decided to step in and introduce myself. Im a new(ish) investor again after taking about 30 years off to do other things.
My area is Plumas and Lassen counties, although I live near Sacramento. The plan is to retire in Plumas county someday.
Right now I have 4 properties up there, two were REOs (wow was THAT a learning experience) and two came to me via word of mouth. My goal is to rehab these units and hold as rentals. One rented so far, one in the final stages of rent prep (Paint!) and two in rehab right now. Im learning a lot reading here and trying to apply it to the real world and my past experiences.
I appreciate the wealth of info on this site and thanks for letting me join in!
~Shelley