REO property under contract- Is this a good deal?

[Lisa Guerin]

Hello All,

We just got an REO under contract in a tough market which the asset manager was not willing to go below list, but after having it inspected it needs some costly repairs that we were not anticipating. The roof is a major ticket item that can really hurt the renovation budget. It also has high levels of Radon. Can we ask for an allowance for these repairs from the bank? What can we expect? Should we keep the property and fix only the bare minimum, or let the property go? Financing all needed repairs could get very costly at this point, and the property may only break even. This is an owner occupant property, and we would live in it and fix it, but it is a total renovation which we could only afford to make a few very needed repairs.