Overall, this buying season has been white hot. Properties are being sold at a furious pace, and some for more than their assessed values. While I like the fact that the real estate market in Smalltown is healthy, I hate the fact that I’m competing with so many buyers, many of whom are in better financial position than I am. I saw one property a couple weeks ago.
Beautiful building with a very finish-able attic. The neighborhood was ridiculously quiet and awesome, exactly what I’ve been looking for. The owner wanted $90,000, and I wanted to start negotiating at 76K. My realtor called me back and told me that the place is now under contract. The prospective buyer’s bid of $83,000 in cash was accepted. $83,000 in cash. How the hell am I supposed to compete with people who have $83,000 just lying around?!
The problem I have is that I still want that finished attic, but not many properties on the market have one. And, when I do find a property that has at least a finish-able attic, the numbers are too high for me to make a good profit. If I had bought that same $83,000 property, my mortgage would be around $790, let’s make it $800. Both apartment rent for $700, so that’s $1400 total rent income. $1400 minus the mortgage of $800 is $500. Take out at least $300 per month for repairs and water bills, and I have a “grand” monthly profit of $200. Ugh!
Then there are the properties that have annoying tenants. These are the ones that always give prospective buyers a hard time because they don’t want to have the hassle of people walking through their apartment. Two things I have to say about that. First, if they don’t want the hassle of prospective buyers walking through their living space, buy a fucking house. Tenants sometimes forget that they don’t own a damned thing, and that they live in someone else’s property. Secondly, making it difficult for a prospective buyer only hurts the tenant in the long run. Do they really think I’m going to keep a tenant who is giving everyone such a hard time just to take a one-minute walkthrough of the apartment?? I’m all about warning signals, and I can think of no greater red flag than someone who’s not even my tenant giving ME problems. The more accommodating a tenant is, the better chance they have of staying in the apartment they’re trying so hard to keep. Idiots.
I need to keep my patience and hope that the right property comes my way. I’m supposed to finally take a look at the attic of PP4 #5 soon. If the attic looks finish-able and the owner is willing to come down on the $77,500 that we negotiated last time, I may just buy PP4 #5 and finish the attic myself, using handyman Alfonso or something. The property is nice and I like the area, so I wouldn’t really be settling for anything less than what I’m looking for. Until then, the search continues…
Beautiful building with a very finish-able attic. The neighborhood was ridiculously quiet and awesome, exactly what I’ve been looking for. The owner wanted $90,000, and I wanted to start negotiating at 76K. My realtor called me back and told me that the place is now under contract. The prospective buyer’s bid of $83,000 in cash was accepted. $83,000 in cash. How the hell am I supposed to compete with people who have $83,000 just lying around?!
The problem I have is that I still want that finished attic, but not many properties on the market have one. And, when I do find a property that has at least a finish-able attic, the numbers are too high for me to make a good profit. If I had bought that same $83,000 property, my mortgage would be around $790, let’s make it $800. Both apartment rent for $700, so that’s $1400 total rent income. $1400 minus the mortgage of $800 is $500. Take out at least $300 per month for repairs and water bills, and I have a “grand” monthly profit of $200. Ugh!
Then there are the properties that have annoying tenants. These are the ones that always give prospective buyers a hard time because they don’t want to have the hassle of people walking through their apartment. Two things I have to say about that. First, if they don’t want the hassle of prospective buyers walking through their living space, buy a fucking house. Tenants sometimes forget that they don’t own a damned thing, and that they live in someone else’s property. Secondly, making it difficult for a prospective buyer only hurts the tenant in the long run. Do they really think I’m going to keep a tenant who is giving everyone such a hard time just to take a one-minute walkthrough of the apartment?? I’m all about warning signals, and I can think of no greater red flag than someone who’s not even my tenant giving ME problems. The more accommodating a tenant is, the better chance they have of staying in the apartment they’re trying so hard to keep. Idiots.
I need to keep my patience and hope that the right property comes my way. I’m supposed to finally take a look at the attic of PP4 #5 soon. If the attic looks finish-able and the owner is willing to come down on the $77,500 that we negotiated last time, I may just buy PP4 #5 and finish the attic myself, using handyman Alfonso or something. The property is nice and I like the area, so I wouldn’t really be settling for anything less than what I’m looking for. Until then, the search continues…
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