At the end of 2012, we had identified a property we wanted but alas it was in a pending state, however we kept a close eye on it. One day during our weekly updates to our spreadsheet, we noticed it was active again. We immediately called the realtor and asked to see it. It was listed at $69,500. Our research had told us it was priced right for the market. We didn't know the status of the house, so we went with 2 offers in hand. An offer for $65,000 and an offer for $69,500 (full price). We look at what others houses were renting for and knew we could list it for $950/month and at worse get $900/month. At $900/month it met our cash flow demands by almost 2X. We saw it and it only need carpet cleaning, new locks, and a good full cleaning. We estimated it would take about $500 to get it ready for rent. We offered $69,500 right there and then. We were told there were multiple offers on the property and he would let us know.
We were called back the next day and said if we could provide a pre-approval letter from our bank, they would accept our offer. They gave us a week to get this together. It took us 3 days and we provided it. On the back end we went to our bank and asked for 10% down and 5.75% interest based on our perfect payment history with our other 2 properties. They agreed. We presented the pre-approval letter and our offer was accepted.
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