It's probably too early to start a thread on the topic but figured I would since it's my first action I've taken since I began looking for properties several months ago.

I found an REO listed on the MLS yesterday and noticed it was listed at about 30% of the ARV of several comps in the immediate area.

The house itself is a 3/1 1200 sf cape cod outside of Baltimore in a desirable school district where the average home price is over $300k and most houses on this block were sold for between $325 and $400k. Photos of the interior show some flakey paint and dated interior, but nothing seems out of the ordinary - no signs of fire or flood or mold damage. Roof looks to be in good shape. Still has window units for AC, so I'll probably try to get CAC installed.

House is in red and blue prices indicate the last 3 years of sold comps. House was listed at $109k and I offered $130k.

I contacted my realtor and he informed me that offers were being considered the following day (today) and they would be accepting the highest and best. So after looking at every comp online I could find, I decided to make an offer of $20k over list - without ever seeing the property - which if it's accepted would still give me an $84k budget to stay within the 65% rule. My realtor suggested a 7 day finance contingency to give us an out just in case we get in there and find something unforeseen.

So I should know by tomorrow if I'm joining the Flip Club.

Oh, and I finally ordered J Scott's books on flipping and estimating repairs...I might email him for some advice on this since he's local. :)

1 Vote

12 Replies

Jump to Last Reply

Put my first offer in on a house to flip

Most Popular Reply