Hey
so I am considering a 4 unit bank owned foreclosure that still has non paying tenants living it. Seems the owner stopped caring and the bank foreclosed but still some stragglers. For foreclosure specific law this is in virginia (if anyone has some suggestions on what to watch out for).
It is actually listed on MLS, it was at $110k a few months ago, then dropped to 100k after a month and now has been dropped to $90k.
The gas and electric appear to be metered separately, so most likely owner pays W/S/T
It was last rented for $1900 whenever rents were being collected.
Rentometer gives the following:
| Median rent: $650 |
| Average rent: $644 |
| 60% between: $570 – $718 |
80% between: $531 – $757
|
No inspection is allowed, so I was considering starting with an all cash offer in the $60k range and when possible refi to a commercial loan. This would give a huge buffer, but who knows if the owner would even acknowledge it. I believe its being serviced by select portfolio servicing but not 100%
Experience level - buy and hold, self manage, 5+ properties w/ 19 units all acquired off MLS w/ commercial financing. But no foreclosure potential heavy rehab experience, though not scared ;) yet...
