All Forum Posts by: Ana Hyler

Thanks so much everyone. All the comments help a lot. As for the improvements, we are starting with a new roof put in this week and hard plumbing worked on.

We just purchased a REO property that needs a lot of work. The property was trashed by the previous owners and it was without any utility for the past year. Some of the spindles were just pulled from the banister and used as fire wood! I mean…all the floors need to be replaced and copper is gone…so all new plumbing, electric is a mess…you kind of wonder…what did they do there? And needless to say…walls have holes everywhere. The house has great potential… it catches everyone’s attention with its contemporary architecture and location is prime. There is an in-ground pool which we will soon find out if it works. The numbers are as follow:

Asking price: $167,500
Appraised at: $167000 (2 months ago with repairs in mind)
FMV:$220,000 (sale comparison in the area and sq. ft.)
Bought it for : $128,000 (we closed on Wednesday !)

Now the work begins and we will have it re-appraised in 4 months. We need for the house to appraise at at least $210,000. What should we concentrate on in terms of what makes a house appraise better? I was reading about some people saying wood floors, granite kitchen…are these really going to make a difference? Do you have any suggestions?
Thanks !
:lol: :idea:

Well... make sure you know your goals before you put any money down for anything. Make sure you set your goals and then your strategy will jump out.
Good luck.

Good point Jim... I didn't think about it till you broght it up. I don;t have this issue but I'm following this topic.

I have purchased severeal HUD houses and the unspoken rule here in Nebraska is that right away they will take an offer of 93% of asking, but lately they have been taking up to 80% right away, if it goes through a price reduction...then you could get it for 75%. You should just give it a try...the good thing about hud is that if you have an experienced agent, HUD will let them know exactly what they need to sell you the house. Just give it a try. Good luck !

I think the new bottom will be at 4500 by June 2009.
What are your predictions for Real estate market rebound.... year?? I say 2013.

Jon,
what do you do full time? Thinking about what you said, I agree with investing where you live... but what do you do with the proeprties you have if you decide to move elsewhere?

Jon, I have purchased so far 3 HUD properties but this was before they did the lead base paint test. I was looking to buy one with the test report though and just to give you an idea, the remediation cost (according to their report) would be close to $30,000 on a house worth $95,000. Needless to say...crazy price. I did a little research, and with that report in hand you can hire a regular paiter and have the test re done after the paint is completed, to make sure it was remediated. (the test runs at about $500). All this is not a must though, if you want to rent it...you still can ...but at this point you would disclose there is lead base paint at the house. To sell it...it's the same...you would have to disclose it and you know how some buyers are...they don't want to have to deal with it. I would recomend that if you want to sell it, have it re-painted and re-tested and have the new report available for the buyers to see ! Good luck.

Although house prices are very low in that area...no one is giving them away for free ! So...Congratulations, cause you really did win something. The way I see it, this will be a crash course on out of state investment for you. I'm sure it's a good thing to the beggining of your R.E. investment business. Good luck !

Congratulations ! Great deal... how many of these do you get done a year? and what is AHS warranty ?