How much should I offer?

[Sharad M.]

Hello all,

There's a duplex listed for sale on HUD website. Each unit is 2 bedroom/1 bathroom. However, HUD has is listed incorrectly as a SFH as 2/1 and the asking price is $50,000. The house doesn't need much work, mostly cosmetic.

The property is set up for 2 separate units, with everything separate. Today is the first day for all bidders, and I am not sure how much to offer for this one? Anyone has had any similar experience with HUD?

Thanks!

[J Scott]

Hey Max,

You haven't provided nearly enough information here to answer your question (which may be why you haven't gotten any responses yet).

In order to know how much to pay for any property, you need to know what your exit strategy is and what the other numbers surrounding the exit strategy are.

For example, if you're looking to flip this property, you need to know how much rehab it needs and how much it will sell for.

If you're looking to hold this property as a rental, you need to know what amount of rent it will generate, how much rehab it needs, what your cash-flow goals are, how you will be financing it, etc.

If you can give us more information about your exit strategy and the pertinent numbers, perhaps we can help you figure out a reasonable offer...