All Forum Posts by: Josh Welch

Hello everyone! This is my first post as a new bigger pockets member of only a month so I hope my question hasn't been asked already! I am trying to decide if a HUD property is worth any more consideration for a owner occupant FHA 203k rehab loan than I've already given it. I know everyone has their own tolerance for how much rehab they are comfortable with, but I wanted to poll the community and see if there are some major red flags any investor would feel uncomfortable with. Here are the facts: - 2 story MFR in Dorchester, MA (up and coming suburb of Boston) - 6 bdrm, 1 bath per unit - traditional block foundation, wood frame, New England tile siding. - Listing price on HUD $365,000 - Comp a few doors down with almost identical layout (1.5 bath vs 1) sold for $399,000 last November. - approx ARV $400k - rehab costs are extreme but unsure at exact estimate due to my lack of experience but at least $40k After a physical inspection here's what I noticed. Severe sloping of the floor of entire right side of the house both levels, wood of front porch could break if the next 250lb+ person walked on it, wood rot on Windows, acoustical ceiling tiles, no appliances in kitchen, complete overhaul of bathrooms needed, the list goes on. Is there anyone in the community that has experience with MFR HUDs that could maybe share their story or experience with "homes beyond hope?" Bonus points for Boston investors! Many thanks, Josh W.

Hi George, the only rental property I own currently is in Orlando near downtown in Colonialtown North. I will say areas close to downtown are pretty hot right now. Because Florida was one of the hardest hit areas during the '08 meltdown, a lot of properties were scooped up at ridiculous prices and now have taken off like a rocket, especially in Orlando. 

If you can find something in Mills-50 district or colonialtown, you won't be disappointed. That's where I am focusing for my next Orlando purchase. 

Stay away from Pine Hills (Unless you're looking for section 8 and/or Class C-D SFR/Multi-fams) and select areas of Metro West.

Hope this helps,

Josh W