The Deal Deferred

Tomorrow night, Paul and I have a date to analyze our next set of RE deals. I am so excited!

In the meantime, I wanted to share why the deal that we put a bid on didn't work, and the specifics of it.

The deal was a 2 family, with a vacant, build-able lot, close to Yale in a safe area. It was origionally listed at 399K and had been dropped to 324K. We came in at 225K because it would also cost 400K to build a 3 family on the vacant lot.

As an aside, we had checked with the building and zoning departments, a 3 family in that area would have been allowed.

With a 3 family, with 3 bedrooms each and each bedroom renting for 600 (low estimate, most are rented for 650-700) that would be income of $5400.

Going above the 225K price (plus 400K in building) would have been cutting it too close for our (newbie) comfort.

That being said, there are a million deals out there, so we will continue looking.