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Updated over 9 years ago,
Analyzing Properties to Determine Good Value
I am new to investing completely and I do have a good line of credit and have been approved for approximately a 120,000 loan. I guess my question is centering on the 70% rule and learning how to assess a good deal when I find one. There is currently a single family home selling for a reduced price of 99k and the comps around the area are selling for 120k. Can I still use the 70% rule for determining an offer on a house that has already been reduced? The quick estimate I received on doing it 55% with a quick estimate of 10k in rehab would be around 74k max asking price. Now, just to be clear my family and I plan to move into our first property and sell or renovate in a year or two, now, with that said would that also be wise to attempt to get the FHA 203k loan instead of my approved bank loan, as well how realistic would a low offer like that be accepted or is that only in the case of a motivated seller? Again sorry I am sure this is a no brainer to many of you but I just like to clarify some of what I learned and see if I am on the right track.