All Forum Posts by: Jeremy Gengenbach

I have been looking at foreclosed houses in Houston, TX trying to find a property that I can force equity into. Today I visited 2 HUD properties that interested me because of their condition. I knew they both needed some extensive work and estimated rehabs from the pictures on the MLS. Before seeing them in person, I felt like HUD would never accept my offer and I was wasting my agent's time even asking to make an offer. After seeing the properties I found more damage/necessary repairs, which added to my estimated rehab, and lowers my max allowable offer.

I read that HUD is looking to collect 88% of the list price which I can understand for their houses that have been repaired. But it doesn't make sense to me in these properties. One house is listed at $107,000 and the other at $130,000, which means HUD is looking to collect around $94K and $114K. My estimated ARV's are $115K and $150K

However, the first house is a full gut with possible foundation issues and the second needs over $30K in rehab. In both cases the rehab alone puts the houses below HUD minimum offer, add the 70% rule and its mind blowing.

Should I ask my agent to make the offers ? Is there a way to dispute the asking price? 

Should I forget HUD all together?

Great inputs, thank you all. 

This is just a few miles from my home. Not sure why they put bars on the doors and windows either. When I look at this house, I feel like I should not go out at night. But in reality I am comfortable with my wife jogging at night in this neighborhood.

I found a house that will make a perfect BRRRR. The problem that I have is the exterior brick which is painted white (with bright red trim). Every other house in the neighborhood is traditional brick and I am afraid that this cheap looking painted brick will lower the ARV. Is there an affordable way to bring the brick back to the original color?

I found a duplex near me on HAR that is in foreclosure. I ran the numbers and I think it may be a good investment for a rental property. It needs some rehab work, probably $10K-$15K by my best guess.
I am not a pro member, so I cannot share the calculator results.
I am looking for another investor to possibly partner with on this property, I have all of the time to work on the deal but no experience and very little capital. Even if I can't be a part of the deal I am willing to help with the footwork for experience.

Please contact me if interested

I plan on attending this event. 

-Jere'my Gengenbach