Rental Number 3 & 4!

I purchased my third rental in April 2011, as well as my fourth – it was a duplex! I have to say today that this is the best property in my portfolio. I purchased the entire building for $61,100! After looking through it with my realtor, I knew I wanted it because all it needed was new floors and paint and a few miscellaneous fixes. I was so excited when I was the highest bid on it!

As with many of the properties I have bought, there were multiple offers on this one. When a foreclosure has multiple offers, typically the seller will ask for everyone’s highest and best offer. So how did I beat out the competition and still get a great deal? I took a chance, and I was right. Since the list price was $60,000, most investors are trying to get the property below list. Some will bid above list by a few hundred dollars, expecting that that will be the high bid. I have realized through my experience that you need to beat the list price by at least a thousand dollars, and you need to be above the highest bidder by enough that it matters to the selling bank. Sometimes the houses go for several thousand above list if the deal is good enough. I’m very happy with the purchase, and I will talk about the renovation process in the next blog.