Re: Hud deal - Posted by SueC
Posted by SueC on December 05, 2000 at 07:38:27:
Joe, I’ve been looking at a few HUD properties in my area, and while this is kinda new to me, here’s what I’ve learned: HUD won’t tell you anything. You might be able to find out some of what’s needed if there is an escrow requirement (for owner occupants who want to use FHA financing) because it will tell you what the FHA wants to see fixed before they’ll lend. It likely DOES need a lot of work. And, if you put your $1,000 down, and find problems you didn’t know about, you lose your deposit, pretty much no matter what (if you are buying as an investor, at least). In addition, be sure to figure all your costs when looking at buying and renovating, i.e., rehab costs PLUS holding costs, rental/sale costs, etc., and see if their price makes sense: it likely doesn’t otherwise the real estate agents who list these would have already snapped it up. (At least, that’s what happens in my market.)
I would say that if there is that much potential profit in it, there is something wrong that is not evident, and it would be worth having an inspector look at the place if you don’t know what you’re looking at yourself. Structural, big plumbing problems, etc.
All that being said, I am buying a HUD condo myself - after watching this property for several months, I made an offer, which was rejected by HUD and the next day they lowered the price below what I’d offered the day before!! I’ve bought the property jointly with an investor who will be doing the work. So, it’s still probably worth looking at!
Just a little of my recent expereince. SC