REO previously flooded and unoccupied for six years

[Karoline Kaon]

Hello BP community,

I am looking to invest in a property out of state but I will be moving into it for grad school. This would be my first property that I buy sight unseen. It is an REO and I have not yet had it inspected. I just learned that it might have had some damage to the foundation. There was a flood in September 2011 and the water had not been on since October 2011. The house has also been vacant since then. Apparently, the water level was so high, it went over the levee's and flooded the area of the house.

I am under an as-is contract with the bank. I still have twelve days for the inspection but I don't know if it is worth it. 

Another issue is insurance, my realtor quoted $302/year for insurance. Which seems low to me. But because the house is less under $50,000, the insurance rate is lower? 

The inspector would confirm whether there was foundation damage. What do ya'll think? Is it worth it to get the inspector to check it out or should I run? 

[Anthony Dooley]

Absolutely crazy. The insurance quote was probably for flood insurance, which is required if you use a bank to finance this. What is your exit strategy? Who will want to buy this from you in the future?

Why do you think a local investor has not bought this property in 6 years?  Because it isn't worth it. If you can't pay cash for this thing, I definitely wouldn't buy it. Invest what you can afford to lose on this.