Thursday, February 03, 2005
1st REI Deal - SFH in Buffalo NY
My 1st REI Deal - SFH Buffalo NY
This is a pic of my 1st REI deal in Buffalo NY. Purchased it as a REO (real estate owned from the bank after foreclosure). Due to the tight numbers after acquistion and rehab costs, I felt it was better to lease option it. My strategy was not to hold onto alot of these but instead cash out after 1 yr to lower capital gains taxes. It took us awhile to get it done but it is a great learning experience!
9/29/2005 - for the most part the tenants are paying the rent but not paying all other associated costs such as sewage rent, water fees, etc... It is very frustrating to keep mailing them. The redeeming thing is to qualify them to purchase the property. Looking at the market, it has slowly appreciated and the area is still ok but I am keeping my eyes out on this. For the most part the exit is to sell it ASAP. It is over a year so we would be taxed long term capital gains.
1/7/2006 - we contacted the tenants and suggested that we get them a lender, we want to get out of the Buffalo market and find more profitable markets. The property is cashflowing very nicely.