拿到了今年第三个REO房,好不容易啊.

Finally I got this one in a okay neighborhood. The price I got is 95K. 2006 sales price was 320K. It's a 3bed 2.5 bath townhouse close to Northern VA's high tech centers. I acted quickly so that I won this one despite 5 other offers have been placed on this one. I will apply for a loan with 20% down. The situation is that the lowest price in this neighborhood on the market is 130K. The reason I got it low is that the previous owner damaged the house. Bank had to tear down the drywall and install the new drywalls. Currently, I need to spend 10K to finish the rehab work and put it on rental market. I expect to rent it out for $1300/month From my observation, price in this neighborhood has reached bottom. I am currently renting two earlier purchases, hopefully I can rent them out in time to start cash flow.

I promised myself that I should not buy too many houses in one year, but I violated my rule because the cash flow situation is good and these houses are all below 100K. Back in the old days I have to spend 300K and it's not enough to buy one townhouse. Now I can buy 3 and still have some leftover. In last couple month I bought two other bank-owned townhouses at 80K to 90K range. The idea is that each townhouse can yield 1000 to 13000/month rent. Therefore, cash flow has surpassed Texas.

In these neighborhoods I am working at, prices are no longer dropping, bidding is heavy. I observe many buyers submit bid without even bother to check the property. And many give full cash offers.

I plan to buy couple more next year. I expect bidding war may be stronger next year as more bargain hunter crawl out of hybernation.

From my perspective, I want to thank the housing market crisis to give me such opportunities. Thinking back, the most wise actions I have done to protect myself is that I avoided making any purchase during 2005 and 2006. My other holdings were acquired in the 90s and early 2000s. That's due to my diligent study of housing trend and study of past historical patterns. From that knowledge, I learned to avoid making big purchases during the peak years.

所有跟帖： 

• Good purchase -Wisdom101- ♂ (58 bytes) () 07/08/2008 postreply 12:48:15

• gongxi. do you manage property yourself? -blueoceanwave- ♀ (104 bytes) () 07/08/2008 postreply 12:48:48

• I focus on signing long term lease, so I can rent -miat42- ♂ (368 bytes) () 07/08/2008 postreply 13:24:39

• 回复：I focus on signing long term lease, so I can rent -blueoceanwave- ♀ (92 bytes) () 07/08/2008 postreply 13:44:07

• $300 discount -miat42- ♂ (0 bytes) () 07/08/2008 postreply 13:51:55

• 恭喜M兄！ -芦苇葱葱- ♀ (0 bytes) () 07/08/2008 postreply 12:58:38

• co：恭喜M兄！ -小小石头- ♂ (0 bytes) () 07/08/2008 postreply 13:45:33

• Co：co：恭喜恭喜！ -jy101- ♂ (0 bytes) () 07/08/2008 postreply 21:47:29

• That is a good one. -cultuslake- ♂ (44 bytes) () 07/08/2008 postreply 12:59:58

• So flippers all move to cheap areas? B. A. actually has less fli -都爱哈哈- ♀ (0 bytes) () 07/08/2008 postreply 13:32:01

• In Northern VA, currently there are massive flippers -miat42- ♂ (0 bytes) () 07/08/2008 postreply 13:41:08

• Corrected, they are not flippers, should be long term investors -miat42- ♂ (0 bytes) () 07/08/2008 postreply 14:14:56

• I am always in cheap areas. And I don't consider myself -cultuslake- ♂ (18 bytes) () 07/08/2008 postreply 14:43:26

• Don't get personal. Do you want to hear a lie or a truth? -miat42- ♂ (989 bytes) () 07/08/2008 postreply 13:34:44

• Haha, don't get serious. I am just joking. -cultuslake- ♂ (114 bytes) () 07/08/2008 postreply 14:38:27

• My friendly suggestion to you: Don't buy too many in Texas -miat42- ♂ (389 bytes) () 07/08/2008 postreply 14:49:38

• Let me reiterate why I love Florida coastal areas and DC areas? -miat42- ♂ (901 bytes) () 07/08/2008 postreply 15:03:52

• Thank you. -cultuslake- ♂ (552 bytes) () 07/08/2008 postreply 15:39:37

• Sure, very understood. -miat42- ♂ (0 bytes) () 07/08/2008 postreply 15:58:04

• K, how come you have so much time? -都爱哈哈- ♀ (0 bytes) () 07/08/2008 postreply 13:02:29

• 周末是我特忙的时候. 平时不忙. -miat42- ♂ (0 bytes) () 07/08/2008 postreply 13:21:59

• 恭喜。谢分享！ -蒙得- ♂ (0 bytes) () 07/08/2008 postreply 13:10:19

• crisis comes with opportunities. Well said -都爱哈哈- ♀ (0 bytes) () 07/08/2008 postreply 13:28:29

• 恭喜!!!!!!!!!!!!!!!!! -hc29- ♀ (0 bytes) () 07/08/2008 postreply 14:15:52

• 回复：拿到了今年第三个REO房,好不容易啊. -AB+- ♀ (18 bytes) () 07/08/2008 postreply 14:18:23

• If the 1991 is any reference -大石- ♂ (303 bytes) () 07/08/2008 postreply 18:19:35

• 抢到了! -bby- ♂ (58 bytes) () 07/08/2008 postreply 19:49:53

• 恭喜!!!!!!!!!!!!!!!!! 来晚了. -va_landlord- ♂ (0 bytes) () 07/08/2008 postreply 21:20:38

• 恭喜!!! 注意节省弹药,涨了才买最多损失10%,下坡截马,适可而止. --j4- ♂ (0 bytes) () 07/08/2008 postreply 23:46:11