When you get a loan to buy a property, almost all conventional lenders will use the lower of the purchase price or the appraised value.You can, however, get rehab loans that will base the value on the price after repairs.

Count on vacancies, and repairs when you rent in a good neighborbood. 

Another one I like, is to include, when applicable, an "Owner Repair Agreement" that spells out what repairs the owner will make on his own, a time frame for completion, and what happens if the work is not done.

., 1984 construction available for me to purchase @ $84,000; estimated necessary repairs = $4k.

Insurance companies may be involved, and may pay a settlement to the lender for the damages, once the two of them agree on an amount.If this was a desirable area with sales going on, I would say the house would end up selling for something near its retail price in good condition, less the cost of the repairs.

Warren, I was thinking the form disk ( Repair estimate sheet), kitchen / bathroom template....labour material and pricing how to structure and line up paperwork and outline the process of doing renovation...It is a reference manual that tells how to prescreen contractors...etc..

I'm interested in buying cheap houses(up to $100,000), doing some repairs, and holding for the long run.

I have some balconies that were repaired badly by a contractor some years back.

I know there are many repair books out there but most of them are pretty poor.

The borrower must front the cost of repairs and then be reimbursed from the rehab escrow account at each of the five draws allowed.I think, with the current mess, they'll bring back the 203(k) loan for investors, but with more oversight features to (attempt to) avoid the fraud associated with investor loans.By the way, the news is that 50 new FBI agents have been added to a task force in Southern CA alone to address mortgage fraud.