worth the headache? REO flip.

[Aref Shehadeh]

Here's the sitch-

I have a REO property in inspection period.

Gas- Bank refuses to connect gas which has been cut off at the street. Pipes inside seem to be corroded. The REO listing agent seemed to slip up and told me "the house has a history of gas leaks". Won't elaborate more.

Electric- Got it on. Has live knob and tube throughout the entire house. 

Plumbing- Water is off. Big hole in ceiling in living room exposing pipes which look as if they were leaking before.

Basement- tons of mold, asbestos on pipes, some split beams evident in basement.

I have the house in contract at 45-50% of ARV. $62K purchase price. $25K estimated cosmetic repairs (budgeted for likely overbudget).

Rehabbers- what is your minimum criteria for taking on projects. Would what I mentioned scare you? Will try to get bank to discount, but they likely won't... Anyone have experience actually getting banks to budge?

After cosmetic rehab budget I have $10K to apply towards issues without it killing the deal given holding and selling costs. 

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