The 45-day Countdown: Day 9

To recap, we are buying a rental with a 1031 exchange. The rules for the exchange stipulate that we have 45-days to identify our new rental.  So last week we looked at 6 houses.

John’s favorite house was house #3. It sure has the curb appeal! It’s also very nice inside. Although I didn’t like how the 2-story neighbors looked down into the backyard. But the main issue turned out to be budget. It’s too expensive!

My favorite was house #6, primarily because it was the cheapest of the 6 options. Unfortunately, John didn’t like that house at all.

Stalemate! Time to recalibrate!

Most of the houses in the first set of 6 houses turned out to be too far over budget. Our budget for this rental purchase has been a moving target because so much is going on with the remodel of our own house, as well as the other house we are already buying. But we now think we have a more realistic target budget.

So we identified a new set of houses, at a lower price point.

House #7

I saw this one go on the market late on Friday and I emailed our agent immediately. I knew it would go fast. She wasn’t able to get us out to see it until this morning (Sunday), and by that time, there were already 4 offers on it, at or above list.  We quickly put an offer in too…over list and just a bit over our preferred budget.  It’s unusual for houses to go for over list in Albuquerque, but the ones that are newer, in excellent shape, and priced competitively do. This one is spotless, inside & out, and in the best school district in Albuquerque.

This is our first actual offer in our 45-day countdown. Wish us luck!

House #8

House #8 is also in the best school district, but barely. The neighborhood is mixed and older. As an older house (1977), is a good price for the size, below budget, but it has too many walls and not enough windows! The more modern houses are more open, light & bright inside. Also the sunroom is aging and will eventually need removed.

 

And what’s with the bars on the windows? I would take those down immediately. It’s not that bad of a neighborhood!

House #9

Next we saw this little one. It’s quite affordable, neat and clean, with high ceilings and an open layout. It’s in one of the better school districts, although not the best.

 

You can’t tell from the photos, but the interior paint has a distinct pink tinge. I’m not sure how badly that would put off prospective tenants.  A full house interior paint job is expensive. The kitchen counter top is also light pink.

House #10

The price for this house is very low. I really couldn’t figure out why it’s so low. I didn’t like the house very much, but it wasn’t terrible. I’ve certainly seen considerably worse. It’s in the second best school district, like House #9.

 

There was one odd issue – the stucco seemed to be spalling in several places.  There’s either a water/drainage issue, or a stucco issue. We’d probably have to install a couple of french drains in the yard and install better gutters and flashing. Or if it’s a stucco issue and not a water issue, we might even need to re-stucco the house. Even that worse case scenario wouldn’t really explain the low price. I think this would be a good option for someone on a lower budget than our target.

Next, we wait and see what happens with our offer on House #7!