HUD Turned Down/Then Accepted Terms

[David Moore]

My LLC made an offer on a 2 bedroom 1 bath home in Albert Lea, MN.  The home needs a $1500.00 sump pump and about $1500.00 in roof repair.  Other than that, it needs nothing.  Similar homes in Albert Lea sell for $55,000 to $75,000.00.  

Listed price $47,000.00, on the market now for 48 days. My LLC offered $37,600.00, exactly 80% a week ago. On Tuesday, I learned from my realtor that HUD countered at $41,500.00. We chose not to increase our offer, and we pulled the offer. Today, my realtor calls back, saying HUD decided they will take my offer, if I am still interested.

It will rent for $650.00, tenant pays all utilities save water. Cash flow, calculated on this site, will be $248.00 per month. It is already a pretty good deal, but not quite a 2% winner. I would like your advice. Lock up the HUD at $37,600.00 or counter with a lower offer. What would my fellow BP investors do in my place? I have more potential renters looking for a home, so I'm tempted just to get this one in the boat.

[Greg H.]

@David Moore 

You would not be able to counter HUD again. Once your offer is accepted, you only options are to turn in the contact or not. If you do not turn in the contract then the property will be returned to the market, If you place another offer you will receive the same generic counter as before and maybe at some point they would accept the lower offer. During that time anyone else would be able purchase as well