Cash or Finance - Fannie Mae REO

[Keerthi A.]

How do I win the bids? Will cash give me edge. If so, what kind of discount can I get with cash purchase.

Last time, I have tried to bid around 7% above asking on this particular building with low assements, I did not win the bid. Asking 53K, bid 58K finance unsuccesfully.

Now another unit has come up. Listed in Jan for 50K on MLS, but with some work needed. Then delisted.

It is coming back again. The problem is I have limited cash reserve around 50-54K and would like to use it for two properties, so do not want to spend my entire capital.

It might be under First Look program for 15 days and then I will have a chance to go at it. Good thing working for me is that rentals are capped and have hit the 25% limit. So investor demand might be little bit less. I am fine with this as I myself can move in or rent out the rooms to students seperately until the cap opens up.

Asssuming the asking price is 52K. Should I bid for 55K cash or 60K through finance.

Tax+HOA is around 300, rents are around 1000-1050.