Offer on Bank owned MF unit

[Alfredo Martinez]

Hello BP team, I am getting ready to make an offer on a bank owned MF unit. List price is 73,000. This would be a complete gut on both apartments to include new plumbing and electrical. The property has been vacant for over 2 years and has been vandalized. Pipes were stolen along with water heaters. I am wondering if making an offer of $40,000 is too aggressive and will the bank entertain that offer? I would love to get a mortgage to purchase the house in order to apply the BRRR strategy, but not sure if I will able to get a mortgage for it. If this is not the case I will make a cash offer. Interested in hearing from the team on this. Thank you

[Josh Engelhart]

If the property has any issues that would cause someone to not be able to live there (roof, plumbing, broken windows, holes in the walls, etc.) those items would come back subject to repair on an appraisal and need to be fixed before you can get any type of mortgage financing. If you buy from a person and the items are small they might fix them for you to make the deal work. The bank will never do that for you and on a property like this you need either cash or hard money.

You can offer however much you want. They probably won't take that big of a price cut if the house was just listed. If the property has been sitting on the market for a long time you might have a shot or they might counter your offer.