The lady backs out
July 26th, 2004 by KenricJuly 26, 2004 – A few days before the first $2,500 payment is due, the lady doing my rent to own backs out. I’m left with a tough decision, should I go through with the house or back out with the builder. The house prices has already gone up $3,000 and I do have the lady’s $2,000 already, so its already +$5,000. If I go through with this house myself, I’ll have to reserve $46,000 as a 20% down payment. That would kill my reserves and not allow me to buy anything else until its done. I also have my pre-construction condo which may close at the same time as this home. I shoot an email out to my friends asking for someone to partner up with. I require my partner to have good credit, $2,500 today and $23,000 in 6 months when the house is done. The plan is to wait for the house to be completed and flip it. I ask that my partner has $23,000 in reserves in case we need 20% down to close on the home.
In doing my numbers, I figure we can break even on this as a rental or flip it and possibly pocket $5,000-$8,000 each when its done, after taxes. Now it’s just a matter of sit and wait. At this point we have $7,000 into the home and a December 2004 due date.
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