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Like always, a lot depends on the property. I have seen HUD list the property 5-7K above the county tax appraisal and I've seen them list it 20-22K below as well.

From the HUD appraisals I've seen, it's still based on comps in the area although this often doesn't seem to take into consideration the condition of the house.

I've walked through torn-up dumps that needed 30-50K in work to get it back to normal and I've seen near pristine houses loaded with tons of upgrades for the neighborhood.

I occasionally find the perfect storm of well below appraisal and in great condition in a neighborhood I think will pop in the near term. My bidding is then 12-15% (net to HUD) below the HUD listing price.

My motto is bid low and be thrilled if you win--remember there's something new next week if you don't.

Our other bid didn't win so we're focused on this house now. Looks like I have found a source for 100% financing. My research on flipping HUDs shows that it's only necessary to "carry it" for 90 days before flipping (and that is only if the buyer is using FHA financing) but really our plan is to rent for a few years as I believe the area will really pop next year when the new tollway opens roughly 1-2 miles away. This house is in a town that was pop 1250 in 2000, 13,000 currently and projected for 25,000-30,000 by 2010. The neighborhood has a new middle school (opened last fall) and a new elementary school (opened this fall) within walking distance. Several big developments (retail/commerical) planned along the tollway frontage and several large high tech employers nearby.

Hi and welcome to BP! :welcome:

Hi Dana and welcome to BP! :welcome:

Need more info!

Just based on what you posted the payment seems about right for the loan amount. What are rents in the area? If the $1600 is covered with adequate return on the down stroke and the condo is ready to go (move-in condition) and the neighborhood bodes well for appreciation what is the concern?

Howdy from Central Texas and welcome to BP! :welcome:

Value is where you find it and what you're comfortable with.

I prefer to buy SFHs in good neighborhoods and rent them. I usually chase down HUDs since there are a lot of nice properties (less than 5 years old in good condition) right now in central Texas.

You can also find movitated sellers on resales to find good deals that can be equal to or better then the HUD deals.

I have attended a few first Tuesday courthouse foreclosure auctions just to watch. Since the winning bidder has to show up with a check within the hour I don't know if 25K will get you anything worthwhile.

I'm a "buy and hold" guy. My wife wants to try a flip but I just seem more comfortable with collecting houses.

Good Luck!

Hi and welcome to BP! :welcome:

Hi and welcome to BP! :welcome:

Hi and welcome to BP! :welcome:

Hi and welcome to BP! :welcome: