| 08 July 2010
Hi all,
We have seen a dramatic increase in activity in the past two weeks, and am happy to share one additional closing and three purchases with you.
On 7/2/2010 KNR 2 closed escrow, yielding a profit of over $20,000 (purchase price was $199,000). KNR 2 was the home on Bissett Way. We purchased the home on 5/12/2010 and closed escrow on 7/2/2010. This was our first home to close that was not an all cash deal, and even with a lender that seemed to take forever, the entire hold time was only 51 days! The IRR for KNR 2 is north of 80% and the return on investment is in the 11% range (both are in our target zone).
Now, for the three additional purchases:
On 6/25/2010, we purchased KNR 6, located on Tarpan Ct, in Elk Grove. Tarpan was purchased for $210,000 and is already on the market, listed today, for $269,900. We anticipate another quick hold on this home, as it is in a great neighborhood that has seen recent activity.
On 7/6/2010 (Tuesday), we purchased a KNR 8, which is located also in Elk Grove, on Modena Way. This 2000 square foot home was built in 2005 and is a 4 bedroom 3 bath house that is vacant and will be put on the market as early as tomorrow! Modena was purchased for $192,500. We anticipate putting it on the market for $255,000, and I will keep you posted as this becomes a reality. I will also post a blog entry with a picture when I receive one.
Lastly, we were successful yet again today, purchasing KNR 7. Burrowing Owl Way is also in Elk Grove. This home is just under 3000 square feet, is a 4 bedroom 3 bath house with a pool. Burrowing Owl Way was purchased for $257,000.
To date, we have purchased 8 homes. Of the 8 homes, three have already closed escrow and a fourth is due to close escrow next week. The fifth home (KNR 5) is in a counter offer situation and we are hopeful that we will be putting it in escrow shortly. One home (KNR 6) is on the market as of today, and the two homes we purchased this week will be on the market within 7 days. The three homes have generated gross profits over $91,000.
You may notice that the past three homes have been purchased in Elk Grove. Elk Grove is a newer, upscale community south of downtown Sacramento. KNR 1 was in Elk Grove, but KNR 2-5 were all in Sacramento. This makes 4 homes purchased in Elk Grove and 4 in Sacramento. One benefit of Elk Grove is a lower real property transfer tax!
Pictures to follow!
