Purchase $104,900 3/18/2004
Sold $128,900 9/1/2004
Fix up costs $ 1,200
Closing Costs $ 2,800
6 months of payments $ 4,200
Realtor Fees $ 7,734
Proffit $ 8,063 6.25%
My records on this property are a little sketchy since we had purged our files a few years ago but the GIS is helpful in re-creating some of the records. What I do know is that shortly after purchasing the property I became pregnant with twins and that meant this property HAD to work out. Risk is something we are more aware of these days, but back then our risk meter was broken and we were excited about our new purchase.
We purchased this property through HUD which at the time was an all on-line bidding system. You would look up the properties on line and then contact a registered HUD agent to place the bid for you. Those wishing to owner occupy the property have first rights to bid and then the properties are open to investors.
At that time HUD allowed you inside the house and they would have removed all furniture and winterized the house.
We used our long time Realtor friend Rose to help us place the bid and found out the next day we had won the bid. We then had to send off $1000 and some documents agreeing to purchase and using the HUD attorney for the closing.
Our insurance agent and attorney were then contacted and we began the title search for the property. We closed about a month later.
Then the fun began. We painted the entire house. Back before we had kids we could spend ALL weekend painting, now that’s not an option, but then our labor was the cheapest route to making money. We did a little pressure washing and cleaned the carpet but all in all the house was in good shape.
We then re-listed the property for $132,000 and sold 9/1/2004 when I was six months pregnant.
What I haven’t told you!
In between the time we made our first offer to HUD and closed on the property a dead pine tree fell through the roof and we didn’t know till after we closed. After the closing we drove out to the house and noticed that the shingles on one area of the roof looked different. A neighbor then came out and told us what happened. HUD had fixed the problem without telling us! That same neighbor would then try and tell all perspective buys what had happened. The problem had been fixed completely, but that didn’t stop the neighbor.
The moral of the story.
Make sure to at least drive by the property the day of closing to see if anything has changed.