I am interested and about to make an offer on a foreclosure near where I live. I am pre-approved for a rehab loan, which calls for %5 down on purchase price + they will give me up to $50,000 in renovation costs. They are asking for $199,999 and I would like to offer $190,000 plus seller pays closing costs... My estimated repairs (not an official contractor bid, just my professional opinion) is going to cost about $75,000. Which brings my Down payment to about $35,000 (%5 of 190,000= $9,500 + im going $25,000 over my $50,000 Reno limit from the lender). So I will be using $35,000 of my own money and financing $230,000. When completely finished the property will be appraised at about $299,900 (according to my realtor and houses around this one). Does anyone think this seems like a good deal? basically $265,000 for a $299,000 house plus all the headaches of dealing with contractors and all of that other stuff? Also I am open to any tips or advice anyone has to offer. Thank you very much for listening!
