3,000 too much?

[Shawn Dandridge]

Hello All,

There is a home in my grandma's neighborhood that has been abandoned, vandalized, and empty since the previous owner died, about 6 or 7 years ago. It is completely overgrown and I have no clue what kind of structural shape the house is in. I do know copper, fixtures, ect were stripped from the house.

I finally tracked down the owner who lives out of state. I told him I would offer him 3k for the property as a starting price basically but I believe I should be MUCH lower, like right around the 500 range. I want the house but I don't want to kill the deal at the same time.

The repairs WILL be major and I anticipate atleast 15K for repairs but I should be able to get rental rates in the neighborhood of 800 or 900 via section 8. It's a 2 bed 1 bath in the 38126 zip code of Memphis, TN. The assessor appraised it at 24k this year even in this state. 2 years of property taxes are delinquent on the property as well but only amount to about another $500 I believe. I know that several Code Enforcement violations have been filed against it also making it an uninhabitable property.

Lastly, would I be able to borrow against the massive equity I would have in the home immediatley to do rehabbing or would I still have to wait 6-12 months for seasoning? Any advice from the pros on this board? Thanks in advance, I know alot of information to swallow but you guys are pros!