All Forum Posts by: Account Closed

Thank you for the advice Sean, Bill, and Ellis.

I plan on watching it and make an offer before the new year. My thought is maybe the would be more motivated to sell lower to meet their numbers. Just speculating that would be a factor. Does anyone have any strategy for offers on foreclosures?

Hello BP Members,

I am considering purchasing a foreclosed Fanne Mae (HomePath) home with a lot of upsides and down sides. I am in desperate need for some advice because I am not very experienced with the evaluating a deal. Comps say it is worth $300k and I have a purchase price currently at $282k. (property tax is $3,950).

The GOOD:

The property has two separate dwellings with their own utilities. The main home can be rented out for $1,650 (3bd, 2bath) a month and the second home for $1,250 a month (3bd, 1bath). I am going to live in the main home but would like to consider them as both rentals in case I would like to move.

The BAD:

The main home needs some roof repairs ($3k) and the smaller home needs a new roof entirely ($7k). I got a great roofer and he is giving me a deal. The main home had multiple additions the home inspection recommend additional investigating. Had a structural engineer design a mitigation for a structural flaw and a contractor bid for ($5k). I estimate with these repairs and all the little things needed will cost $25k (very conservative). Interest rate is high (5.1%, $1,850 note GFE) because it is HomePath home and conventional would not pass with current condition. I estimate the cash on cash return to be about 14%.

Should I Buy or Walk? With $55k I guess I could put 20% on two single families in stead but nothing worth buying around here.