Bank indicates cash offers only

[Matthew Haussmann]

Hello Forums,

I am looking for some input or advice. I am looking at a deal in Pennsylvania. The property is REO, listing at $74,500. The ARV is $110,000 and the house needs a max $22,000 in repairs. My first offer will be $50,000 or less. By the numbers, it should work. My problem is the bank has it listed as a cash only deal. The only reasons for a cash only deal that I'm aware of are if the price is too low for a mortgage (under $25,000 or so around here), or if the damage to the property is so excesive that the bank won't secure a mortgage on the property. I've been in the property and talked to the agent. The issues consist of a leaky roof, need of a bathroom remodel (because of the leaky roof) and the need for a water meter. Beyond that it is all cosmetic. Even factoring maximum cost for the repairs ($10,000 for the roof and $3,000 for the bath, and $5,000 for the water meter, all very high end estimates) I cannot see why the bank would list this as cash only. I have been in similar houses at similar price points with much more damage that were listed as conventional financing. The issue is not the cash purchase, I was planning to use cash anyway. My issue is my fear that I am missing something. Can anyone see anything I might have overlooked?

Thank you for your help.