For all of those who may be interested (or had even forgotten), the real estate business is starting to make moves again. While I don't think there is enough turmoil to take advantage of right now, this deal was too good to pass up.
The property is a rowhouse, similar to two of the other properties we already own. The stunning part of the deal (or at least the first stunning part) was the fact that the seller wanted such a pittance for the house. Off the bat, we should cash flow a nice small amount. There's a Section 8 tenant already in place at an agreeable rent. (Otherwise, we wouldn't have agreed.) With a bit of repairs, the house could be worth 15 - 20K more than our purchase price. My valuation spreadsheet absolutely loved this property when I ran the numbers. It shares a lot of similar traits to our best performing property.
The second great thing about this deal is the financing package. Since the sales price is so low, and we have a line of credit with another lender, we were able to go to our preferred guy and get a nice 10 year fixed pay option ARM. 10 year fixed! At a low rate. Un-fuggin-believable! Yeah, yeah, I can hear all the voices now. However, if we own this property for 10 years, it will be a minor miracle. As far as the option ARM piece goes, it is a very investor specific loan. Do I generally like or feel comfortable with this concept in general? No. However, it helps us achieve a certain goal that as a group of investors, we have sought to achieve. I take that discomfort as a sign of growth, in this case. We have all chosen to be investors and put our own resources on the line in pursuit of our goals.
Anyway, I spent a fair amount of today providing documentation for things I'd already provided documentation of a few months back. I'm going to make sure 120 days haven't passed since the last time, because digging up new versions of all of this shite is really not the best use of my time. There's even more stuff to try to dig up and send off tomorrow. What a friggin' pain. Just moving paper from point A to point B.
Anyway, there is more to come soon. Keep watching...