Doug heard about me from his friend, whom I helped invest two properties in Dublin. When he contacted me, I had a committed tenant to lease this property.
The property was in contract with another buyer and fell out of contract. It was back on market. Around this time (March 2013), the Dublin market was really hot. Properties went into contract less than a week. We had to move quickly. I introduced Doug to a lender and showed him the house next day with his pre-approval in hand. We made an offer of $219,000 that day. It was a multiple offer situation, but Doug went into contract on the next day, March 8, 2013.
The inspection was done and the remedy request was fully accepted by the seller. However, we came to a standstill after the lender’s appraisal came in at $208,000. The listing agent requested to order another appraisal at the Seller’s expense because a similar home closed in the same subdivision for a higher price the previous day.
Doug agreed to take the higher of the two appraisals. The second appraisal came in as $215,000. The seller requested to meet halfway between the purchase price and the second appraisal. After a day of negotiation, the Seller agreed to take $215,000 but to take the washer & dryer and the home warranty back.
We finally closed on April 12,2013. We could not accommodate time for a walk through before closing. When we went to the house after closing, a matching granite top dining table, which was agreed to be part of the sale was missing…It was distasteful for this to happen. However, the $4,000 difference in the purchase price, pushed the cap rate (NOI) from 6% to 7%.
【３Bed/2.5 Bath/2 Car Grage Single Family Home in Dublin】
cap rate/year (NOI) 7%
annual cash flow from $5,000-6,000
pay off comes on 3rd year
【Akiko’s Comment】I truly regret that I did not schedule a walk through, even if it was by myself. Closing was a round table and I feel that table could have been retrieved if we confronted the Sellers face to face…