Here is the latest Undoor acquisition, details and analysis!

Deal Highlights

• Buy & Hold Single Family - 3 bed - 2 bath - 831 sqft - MLS listing

• Purchase Price: $121,150

• ARV: $126,500

• Monthly cash-flow: $260

• Cash on cash: 9.6%

Deal Details

View the full analysis here. (Use code UNDOOR when signing up for dealcheck.io to get 20% off!)

A bit more for the interested. It took 12 offers to get us this deal. Including trying to put an offer on this frustrating deal that fell through. As seems typical in the past year’s market, we were outbid on all but the failed deal linked above. We decided to go with the same strategy and tactic we used on our previous successful acquisition: cash offer, higher EMD, inspection contingency, and a plan to do an immediate refi post close. Just like we did last time, we went in with an offer price ($126,500) slightly higher than list price ($125,000) in order to get the seller’s eyes on our offer. We were successful last time in negotiating after the offer was accepted so we tried that again. Once the inspection came back with nothing major or needing immediate attention, we managed to negotiate the purchase price down $5,350 to $121,150. Since we had no intention of leaving our cash in that property, we started working with our preferred lender a few days before close to get delayed financing (immediate cash-out refinance without the typically required 6 month seasoning). That is now underway, and we should be getting back 75% of our funds within a few weeks with a refi rate of 3.5%. The only reason we purchased cash was to have a stronger offer due to the current market. In less competitive markets, we would have purchased with financing out of the box.

On to the next one.

What We Learned From This Deal

• It does seem like sellers are more likely to negotiate when the property is under contract. So we far we are 100% successful with this strategy.

• Our make-ready costs seem to be pretty consistent regardless of how “turnkey“ they property seems to be.

• Looking at out market every day, this seller market seems to be slowing down quite a bit.

Detailed Property Analysis

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