Townhouse Offer Details & Presentation to Am. Businesswomen Assoc.

Update on Investment Property Purchase Offer

Last week I made an offer of $105,000 on a 1100 sq ft townhouse that was being offered in a range of $115,000 to $125,000.

I asked for sellers to pay 2% of the the value of the house to help with closing cost (about $2,000)(see my previous article about a key phrase to include in your purchase offer to reduce closing costs)

The sellers countered with an offer of $112,000. I sent a note to the sellers saying “in order for this to work for us as a rental property, we have to stay pretty close to our original offer.” And I replied that we wanted to stay at $105,000.

After a little more back-and-forth we finally settled on $106,000 and they paid the 2%.

Other townhouses in the complex rent for $775 and my monthly mortgages payments should come in below $600 per month.

Presentation to American Businesswomen Association

Last Tuesday I made a presentation to the ABA about how I got started in the house fixer upper business. I’m trying to get out a little more to make presentations to various groups to promote my book.

It was really a warm and friendly group. They treated me to dinner and asked a lot good questions about the fixer-upper business, and they purchased many copies of my book.

Info on Terry’s Book

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5 Responses to “Townhouse Offer Details & Presentation to Am. Businesswomen Assoc.”

  1. ConnieBrz says:

    That’s wonderful~! Congrats on the townhome 🙂 And be sure to post pix when you can.

    And kudos to you for getting out there and presenting to the ABA~ 8 out of 12 is excellent~!

  2. Boomer says:

    Congratulations on a great purchase! I’d be interested in what kind of financing terms you were able to get on this deal.

  3. Terry Sprouse says:


    Thanks. I am going to post some pictures soon.

    I was a little nervous before my presentation. I used to be in Toastmasters, but I hadn’t made any presentations for a long while. But once I started speaking thoughI found myself having fun doing it. People seem very interested in learning more about the fixer upper business.


    Thanks for the note. As soon I get the final numbers I’ll post them so everyone can see how they shake out.

  4. Bill R. says:

    Can you explain why this is a good deal?

    $775 – $600 = $175 / month cashflow
    or $2100 / year.

    What are the property taxes in this area? What do you figure as maintenance expenses and vacancy?

    This is a sincere question because I am trying to find real life examples of real estate investors that match up with any of the commonly spouted rules-of-thumb. And I would be very appreciative if you could explain this particular deal a bit more.

  5. Terry Sprouse says:


    Property taxes and insurance are rolled into the monthly payment, so they are covered in the rental charges. I put all the numbers on my blog, so maybe that will clear things up a bit.

    In general, I find that you don’t turn much profit when you first buy a rental property, although in this case, $200/month to start with is pretty good. But, over time you gradually raise the rates, and after a several years you’re making pretty good money.

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