Hud With Foundation Problems
I'm a new investor. i found my first property through hud. the property is selling for 108,900 and appraises for 123,000. the house has foundation problems but is very nice on the inside and serveral upgrades. should i avoid properties like this ?
Thanks,
curious
Hello Nickreed3,
I look to get more quity out of a unit when I purchase. Once you make the need repairs, you may only have 7 or 8k to the good. If you are going to rent it out, that may take your a few months to locate the right tenant. Even if you are going to fix and sell it you could still be looking a few months. I don't see enough profit in the deal to make the risk worth your while. You can do better.
Offer something in the range 83,894. Allow 10k in foundation repairs and other work. This will allow you to make enough money to make it worth your while.
Hi Nickreed3,
There are handful of investors across the US who make a lot of dollars buying HUD homes. But as a caution, the majority of HUD homes are listed at or close to Fair Market Value, which doesn't make much sense for us investors.
There are many first time investors bidding on HUD homes that think HUD homes are automatically a good deal because they are REPOS. Take caution my friend, and make sure that you do your due-diligence!
Best of Success!
BAMZ
Thanks, i respect both replys i,m getting in the business to make a profit. Tell me what you think about this senario ?
A forclosed house selling for 109,900 and the county appraises this house at 129,900. My plan is to rent the house out for a year or so and sell at profit. Also how cani get the true value of this property w/o spending the cash.
nickreed3,
You can get all the COMPs. you need at your county appraisers office....
I use mine ALL the time ...on the interNET!!
....as always,
GoodInvesting, Rocky