Bank Owned Pee House

[Paul Miller]

Hello - looking at a Bank owed 650 sq ft 2/1 in a C+ neighborhood. I affectionately refer to this prospect as the Pee House as it reeks of pet urine. The prior owner had small dogs and you know the rest of the story. I have been in the house and attempted to locate the worst areas for the salts of urea with a uv light. No luck and when I took my mask off, the whole house generally smelled the same. No sign of mold. Carpet over hardwood floors in living room, bdrooms. Hole in floor in living room. Gas forced air for heat. Ok looking water heater. Needs kitchen, bathroom, bedrooms, living room, laundry room rehab. Basement is stand-up crawl space, dry, concrete floor with poured concrete foundation. Does not smell as bad in the basement. Exterior is aluminum siding, needs a new roof and some exterior trim work. Good bones, needs total rehab. ARV is about $65,000; asking price is $33K and rehab estimate is $35K. At 65% of ARV I would have about $42,000 to work with. I need to, of course, get a better purchase price. This would be a Buy, Rehab, Rent, Refi deal. The rent will carry $675/mo. The bank has a major problem here as entry w/o a respirator is just not possible. I am happy to solve this problem for them but the price has to be right. How low have you seen banks go on pee houses? What have you seen work and what advice would you give with bank owned houses that are clearly a problem for them? Thanks for any feedback!