good passive deal? - Posted by Tom K

Posted by Tom K on November 01, 2005 at 20:02:35:

Hi, I’m looking to get more involved in “passive” or “recreational” RE investing (I like my day job and don’t have time or interest in looking for deals, managing, etc) and have run across the following opportunity and would like opinions from the experts.

I have spoken to a company that buys bank-owned properties and rehabs them and then sells to investors at 80% of ARV. For example, a home with ARV of $200k would be sold to me for $160k (which I could fully finance so no money out of pocket). Assuming the ARV is a true number that I could subsequently sell the house for, this seems like a decent deal to me but would like the advice of some seasoned pros.