Unless he/she bought it 30+ years ago, I'd bet your research is flawed

@Scott Wink what your saying could be her best bet if they will allow her to do this.

@Ronnie SparrowI have run into this before you DON't need realtors involved at all, but you have another big issue to fight.If they are using financing, the bank will not be OK with the double close (not under contract with the owner on file) or an assignment fee on the HUD (obvious reasons).Now, you can attempt to do something on a handshake outside of escrow, but thats at your own risk, and i would still draw up docs.Best bet is to close on the property and immediately put it under contract after closing with your end buyer.

So with that being said, I didn't look at the numbers to calculate anything because your repairs were not taken off the ARV which you also need to know.

You will not be able to raise rents until there lease is up so you have to calculate for that period.How many tenants will you lose by increasing the rents?

I've seen REO's listed for $30k more than a ready to move in house down the street,,either the agent was crazy or the bank calculated value by what was owed on it.The bank has to realize the loss on its books when the sale occurs, until then they still have an asset, and they are putting down what they think its worth,,,if they aren't ready to realize the loss, they may keep a higher value, then reduce it over time to keep from taking too much of a loss at one time (another reason they sit on inventory so long, they don't want to sell too many at once)andy

I bet too it will be temporary, guessing.

. $100 wager to anyone interested that says HUD doesn't do anything, other than maybe prohibiting him from buying HUD homes in the future.I won't take this bet because, as far as I know, their policy against first time HUD OO violations isn't widely enforced.

@Joe Gore,All bets are off if you have already been sued, that's what I was talking about by court orders.

If you're betting on appreciation, you might do ok.As far as why someone else didn't buy it, you never know.