Bought my first investment property

kabirApril 3, 2012

I have been a long time reader here. Last month I purchased my first investment property from delinquent sale foreclosure auction. Shortlisted few properties after driving all over. First few went over my predetermined price. Finally the one I liked the most, I was able to outbid everybody.

Its 10 year old 3500 sq ft house in nice suburb of NE Ohio. Selling price when it was built was 350K. I won the auction at 150K. After paying went to knock on the house. They let me in. Surprisingly everything is in great condition. Basement is finished. There is huge deck in the backyard. Only thing needed is new paint and granite in the kitchen. I plan to do the granite myself.

Overall it was a great learning experience. Plan to rent it first and then sell later.

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Billl

Congrats. Bidding on property without seeing the inside is pretty risky. I'm glad it worked out for you so far. Hopefully, you check comps in the area to see what it is worth now though because I'm sure it is nowhere near 350k in this market.

    Bookmark   April 4, 2012 at 8:57AM
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brickeyee

"After paying went to knock on the house. They let me in."

Now you have to get the residents out.

Offering them some money is often effective.

You need to become aware of the eviction laws in your area so you can start the process.

There are often strict times in the laws, and the first step is often a 'NOTICE TO QUIT.'

It must be legally correct as to form, delivery, originator, addressee, etc. for the jurisdiction the property is located in.
Make a mistake and the clock will not start running for the tenant to move.

I hope you have an attorney available.

    Bookmark   April 4, 2012 at 10:33AM
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kabir

House appraised for $290K.The process of previous owners moving out is on its way. They asked me give them absolute last date by which they have to move. I have a feeling it will resolve without eviction notice and attorney.

    Bookmark   April 4, 2012 at 10:52AM
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cas66ragtop

Congrats Kabir. I hope everything goes smoothly for you.

    Bookmark   April 4, 2012 at 11:19AM
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kabir

Thanks. Tomorrow I am going to the house to take measurements for the granite, and access paint carpet etc.

    Bookmark   April 4, 2012 at 9:53PM
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sweet_tea

How many more days will they be living in the house? What date did you give them?

    Bookmark   April 5, 2012 at 10:06AM
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kabir

I told them that last day is when the deed gets written in my name. If they need more time after that they will have to make some sort of arrangement with me.

    Bookmark   April 5, 2012 at 11:06AM
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brickeyee

"I told them that last day is when the deed gets written in my name."

That is as good as any other date actually.

You have clear ownership at that point.

Good luck.
If you find good tenants it is not all that hard.
Just another house to maintain when things break.

Bad tenants can be a nightmare.

    Bookmark   April 5, 2012 at 5:08PM
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suz1023

good luck with it!

    Bookmark   April 5, 2012 at 10:08PM
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