Lose Earnest $ Or Find A Way
REO under contract at 69K, comps show MV at $102K. We have 100% financing on mortgage at 8.25%. Closing in 1 week.
However, we must finance:
Closing costs: $3,600
Repairs: $7,500
taxes, hoa: 3k
Insurance: $700
In the same neighborhood in the past 2 weeks similar houses are selling for $85k. Comps we used reflected $102K.
Rent in the area goes from $900 to $1050.
It will be tight and appears we will go negative quickly if we have to hold very long.
Should we lose our $1,000 earnest money and get out of this deal or do you have suggestions on how to make this work so that it becomes a profitable deal.
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