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Updated over 8 years ago,
Help with deal analysis
hi all- i'm looking at bidding on a hud home in Texas and wanted to run numbers by you guys. the property has been vacant for almost 2 years, just came on market and is about to leave OO bid status. If it clears, I'm interested in proceeding as a fix and flip.
Built in 2012, 2100 sq ft, 3 bed 2 bath + an office, 2 car attached garage in a good neighborhood with the best school district in the area which includes 3 towns and about 100,000 people.
Property sold in 2012 for 252,000. I'm not sure how it sold so high
Those tenants got foreclosed on and property has sat vacant ever since.
First Hud listing currently around155,000.
Comps in area sell for 98-105 p/sqft.
This property is water (pond view) but not access.
Property REEKS of urine and pets. Previous owners had multiple dogs that scratched base boards, doors and used the floors as toilets. Needs deep cleaning (1200)
70-80 % of remaining floors need removal + replacement (carpet and laminate). Both bathroom floors and laundry room area floors are fine (tile). (12,000 ?)
House needs entire interior paint plus all ground level trim work, doors and closets need repair/repaint. (5,000 ?)
Front door framing and probably door needs replacement due to previous owners possibly kicking it in. one large window is cracked and needs replacement. (1,500)
Garage door needs repair, possible replacement. (1,000)
Water meter has been disconnected and needs reinstallation. (2,500)
Needs some new appliances (1,500)
Misc. touch ups- (3,000)
Since utils are off, I expect to find some other issues but for now I'm estimating repair budget at 30,000.
Holding+closing+realtor fees: about 10,000 if I fsbo in the end.
Using potential sales price of 210,000 and 70% rule with 40,000 in costs I am around $107,000 MAO.
Am I doing something incorrectly? I don't see HUD accepting the offer but I can always try. I was considering bidding around 110,000. If someone thinks they can come in at list and make it work then more power to them IMO
Would love to hear any and all thoughts. thanks!