Posted by JFM on May 12, 2007 at 04:48:21:
Repair estimate was worst case. Even with that it will have positive cash flow, and if I get an sale or tenant buyer with numbers anywhere near the comps it looks “good enough”. I’m looking for a base hit, not a home run. $65K sale price would put around $10K in my hand and that works for me. The $55K number came from HUDs BPO. The property showed way worse than actual condition. They must have spent around $2K on clean up alone.
Lender backed out - Posted by JFM
Posted by JFM on May 10, 2007 at 05:45:23:
I have a HUD home under contract and my lender didn’t like the amount and type of repairs needed and backed out. I think its a good deal. 2/1 SF 1000 sq ft. $36,675. purchase price, BPO said ARV of $55K current MV $40K comps of $80-95K. About $15K needed for repairs. I think its too skinny to work with hard money or a rehab loan. Any comments or suggestions would be great.
Re: Lender backed out - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on May 11, 2007 at 12:32:32:
It’s the deal.
Purchase price is 66.6% of ARV
Repairs are 27.2% of ARV
Total 93.8% of ARV…Plus closing costs and holding costs…maybe I’m missing something, but how do you intend to turn a profit?