What do you think of this deal??

[Chris Da]

Hello all.

Well I have been looking for some time now for another decent deal, and I came across this one..

Small 3br brick twin in decent part of town. Fannie Mae owned and listed @ 44900.
The place isn't really bad at all. The garage(single) was converted to a so so living room which has beautiful paneling and ugly carpet but we can over look that simple issue. The one thing that I needed an opinon on was when the converted the garage to a living room, they left the garage door (which is terrible looking) in place minus the tracks because it can no longer go up. Being that the house has a decent little drive way, I think that the sq/ft added by the garage is a pluse. What I wonder about is, would it be better for re-sale to put a new NON working garage door, or to just frame out the opening and put siding? The rest of these little houses all have garage doors. Just a matter of someones opinion, but if I where to frame it out and side it, sometimes that looks worse. Need an opinion.
Anyway enough of the petty things. I bid 36k on this place and have a 4 comps in the very close area settled within a 60 day window suggesting 70k. Just got the notice from Fannie Mae that there is another bid and they need my best offer by 5pm Monday.
My plan was to buy it for 36 and put about 4k into it to really get it looking good. Rent it Section 8 for approx 1000 month, and continue to do so until the market breaks (5 yr window) then sell.
Now, I was going to pay cash for this place, then my lender at the local bank was going to put a mortgage on it for about 65k so I could put some cash in my pocket .
Now, I never did it like this before. Is that a decent way to going about this deal? Also, when I buy it cash, should I title it in my name or LLC or does it not really matter. The only reason I as is that I guess if I plan on doing a re-fi it would be better to just be in my name. RIGHT???
Also I figure the highest I can go on this deal is 40k offer/ What do you think? 40K+3500 closing+say 5k repair to be safe=48500. Value approx 65k 16.5k spead in this market.
Another thing I hate about bidding these things is I don't know the listing agent, which is a negative for me. I hate to say it, but they have their own little community. For all I know the other bid is at 25k, but what can you do.

Well, with the information I gave you and a plan to hold for 5yrs if need be, I think it can work, but always like to ask other peoples opinion. This market drives me nuts, but I do feel we are close to the bottom..