We will post before and after photos as well as keep you updated on how fast we get the rehab done, how fast we put a tenant in place, and how fast we get this sold before year end.
If you are asking how did it sell so fast and even prior to the rehab being complete, you can see a list of benefits of buying this condo after the flip below:
1. New sales price will be $37,000. List price will be firm (non-negotiable), priced to sell below comps and Zillows Zestimate of $49k.
2. 3% credit toward buyer's closing costs
3. Should have a tenant in place at $600 mo so there should be no vacancies to account for.
4. Unit will be rehabbed and in move in ready condition needing no repairs to account for.
5. It will be a traditional sale that can close quickly with quick responses.
6. Using the 50% rule for expenses will give this unit a 10% CAP rate but this number should actually be much higher since there will be no repairs needed or vacancies (closer to 15% CAP rate).
7. There are only 2 other units for sale in this neighborhood one at $31k which is a short sale and unable to close quickly, it also has $3,200 in liens that must be paid off, because it is a short sale the closing costs will probably be about $1500 more as the lien holder/bank will not pay for the CIC fees or Transfer taxes, and this unit needs to be rehabbed. After calculating for all of that it will cost more than my unit at $37k and will take longer to close and the buyer needs to calculate for vacancies since there is no tenant as well as the needed repairs. The second property in there is listed for $37k same as mine but it needs to be rehabbed and they are asking the buyer to pay the title fees as well as the transfer tax. This will push the purchase price to be higher than my unit and then in addition to that it is vacant so you will need to calculate for vacancies as well are repairs.
Long story short my unit is the best deal in this neighborhood and has so many perks it is an investors dream! Should be an easy sale.
If you are a real estate investor contact The Adams Team today!