Ironically, the offers we had from private entities to purchase the property were approximately $200k less than the final price.Why was this the case?

Also check with @Joseph Chiofalo for some further STR investor loan programs and he has a close tax rep we work with.

From my research, the average closing cost of a single-family home in Texas is between 0.98% to 1.31% of the final home sales price.

I have some perspective on this.For me I see this as the market finally catching up with the excess inventory created by residences moving out of OHIO and that area to the south..

I am trying to raise the 10% down and bring in a partner or GAP loan person.

This is a hoarding situation in and on the whole property where neighbors have complained for years with police out on a regular basis and drug use that now the property finally got condemned and they will most likely just walk away from the property and leave it( you would have to see what is outside of the house to believe it).

Fees on DSCR loans always depend on closing date and loan amount.

If you have a reliable, thorough cleaner and you are striving for 5 star ratings, I would pay the cleaner whatever they request.When I finally found such a cleaner, I asked her how much she wanted to make it worth her while to guarantee my unit would be cleaned perfectly and on time.

Just my 2 centsTo answer the question if it’s a tear down you need to understand the comps In That area and the cost to remove the existing and rebuild - where many go wrong with rebuilds is they assume best case construction and holding times and time is money especially if using a construction loan.

Up until the trustee sale (foreclosure auction), the home is still owned and fully controlled by the home owner.I’m assuming you’re going to be looking at off-market properties (since loan status isn’t something they advertise on the MLS so you likely wouldn’t even know if it was in default if it’s a listed property).So, in that case, you’d just negotiate a purchase agreement with the home owner and then take the contract to your local escrow/title company to open escrow.