Tips for foreclosures?

[Justin Moon]

Hi guys,

I'm running the numbers and there is a property I am interested in purchasing. This would be my second investment property, but my first foreclosure that needs some heavy work done to it. The property is currently listed for $70,000 but needs about $30,000 worth of work (floors need to be replaced, all moldings need to be replaced, all walls need to be repainted, caulk around all windows is black and needs to be replaced, a lot of doors are broken, AC units needs to be replaced, room most likely needs to be replaced, two large trees may need to be removed to prevent foundation damage).

The property has been on the market for about 5 months and there aren't any offers on it. If everything was in tip top shape, the house would be work about $100,000, and this is a non-homepath listed foreclosure. If I can get it for around $30,000-$40,000, I think this could be a good deal.

One last note, the previous owner converted the garage into a bedroom, and it definitely slopes a little towards the street. Long story short, no garage.

Any tips? Anything I should be mindful of? Thanks for everyone's help.

[Bryan L.]

@Justin Moon - What inspection? You're going to be more likely to get this at a great price if you make the offer with no contingencies. Get in there and inspect it yourself before you make the offer. Awh hell, just go ahead and make the offer at 30. If it's listed at 70, they probably won't accept it anyway. If they counter-offer anywhere around 40 or less, then start thinking about getting an inspector in there maybe.