Deal Analysis - 2/25/15

Deal Analysis

$49,000 Condo on west side of Logan. ARV $55-60,000.

Price drop on this condo today! It was previously at $54,180 and will show up on my alerts tomorrow morning, but I happened to see it pop up tonight while looking at some other properties. Been casually watching this one, it's a bank owned "REO" and has dropped in price over the last couple of months. I think that with this new price drop it'll go pretty fast - there is very little inventory in Cache Valley right now compared to the normal level. Pretty much nothing is listed below $50,000 - but distressed properties have been taking a heavy hit lately. Seems like a lot of owner occupants are buying at the moment.

The Plan:

I placed a bid of $36,000 on this tonight, which is the opening bid. I think I can make this work if the pictures on the listing are accurate. I'll think about bidding more, but need to see the property first.

Fix & Flip?

Seems to be the quickest option. It's a great time to sell, I would want to make about $10,000 after everything. Not the most glamorous way to make a living, but this would be my first flip, and you've got to start somewhere.

Fix & Rent?

Depending on how high the option goes, this is my number one choice. The price is so low that the barrier to entry is also low. I'm not thinking of holding this for much appreciation above current ARV, but this will probably rent for 550-600, so it makes for a good cash flow property. I would buy with cash, there is a potential that I could get a line of credit secured by the equity later on down the line. This would pay better as a bank account than any FDIC insured nonsense. This could be my version of land banking, folks!

Photo cred to my pals at WFRMLS