How do we get this home? (REO, extensive rehab needed)

[Sarah Taylor]

Hi,

We are looking at an REO property that will not finance traditionally. It needs too much work (we are not sure yet how much the rehab will be, working on getting an estimate now. 1800 sq ft needs two baths, kitchen, floors, lots of walls, a few windows, heating system at least.)

The bank is asking 99k, it just came on the market. It's owned by Wells Fargo and they have it in the MLS and are also utilizing the Hudson and Marshall site. It is open for pre-auction bidding right now. The county has it assessed at 180k. I think after repairs it could sell in the 150k to 160k range if you were to sell it. I don't know a lot about rehabs but I have to guess it'll be at least 40k, could be more. With these figures I know paying 99k for it is too much.

We have access to about 60k cash, but that would require us to access equity in our primary home.

I spoke with a local bank that will do a purchase/construction loan, but it sounds complicated, especially with it being a REO, and would require the bank to go for that which feels unlikely.

Any advice or creative thinking on how we can get this house? 

Sarah