Good Deal?

[Jason S]

I found an REO that has been listed on MLS for 12 days now. The Bank took bank possession on 02/02/09. I am new to this as I have never bought a foreclosure before and not entirely sure what to expect. The house built in 1961 is 932 SF 3 Bed 1 1/2 bath. 1 car garage with 2 car covered carport. I carefully examined it inside and out (of course I am not an inspector). Anyway, The asking price is $52,950.. (Market Value $72,000)The most (comparable)recent sales in the neighborhood were $36,000 and $71,500.. The average market value(based on county assessor) per square foot is right at $68/sqft. My intentions are to keep it as a rental property.

The garage is partially converted and I was thinking about having it framed in adding a window and siding to close it off, it already has ductwork ran into the garage. This would had about 250SF. I believe this would make it more appealing as a 4 bedroom since it does have ample covered parking? Thoughts? Cost?

It needs exterior paint, interior paint which I plan on doing myself. And it needs carpet.

I believe that It would easily rent for $650-$700 as just a 3 bedroom (based on local rents) and then $750-800 if converted the garage to 4th? I am nervous as I don't know what other unknowns I may find? Any advice on whether this a good deal and/or if I should convert the garage? How much lower would you offer?? As always I greatly appreciate all the wonderful information/resources here on BP. Thanks.