Would you buy a piece of property if..... - Posted by Ed

Posted by Tim (Atlanta) on March 11, 1999 at 10:45:05:

They stopped giving out 203K rehab loans to investors, but if you are going to occupy the house yourself, then it seems good to me. If the house is livable, you could fix it up and then cash out with a refinance after the rehab. Also, with that large a rehab costs, I would get an estimate from a contractor. It is hard to see all that needs to be done unless you are an expert.

Would you buy a piece of property if… - Posted by Ed

Posted by Ed on March 10, 1999 at 15:59:01:

“If” is the big word. I may have the potential of making a good buck on a distressed property. Here’s the details: Property listing at 160K. In bad shape at the moment, but will go for 200-250k after repairs. Repairs may cost up to 70K but with some sweat equity can probably do it for 40-50K. Owner has to dump it. He was doing the rehab and lost his job, and he’s out of cash to finish the work. It’s been on the market for 2 months now and he’s getting desperate. I know to get an inspection done on the house first, and I will also visit the courthouse to get more details on the house like what the guy owes on it and what houses are actually going for in the area. I plan on making and offer of 80K-100K and see if he bites. Here’s the “if’s”. If the inspection is favorable, if the guy bites on, let’s say 100K, and if I can get a 203K loan into the financing, I 'm thinking it may be a good deal. Am I wrong? Am I leaving out any thing? Any advice would be helpful. Thanks.