My first offer on a HUD
I'm not sure if it's considered a deal yet, but I found a HUD with a very low $30's price. Now the skinny is, I know this house and I know the area. My best friend from grade and hs lived in this house and I've been in the house several times. My uncle lives down the road. The comps in the area ARV are low to mid $100k range. I listened to some podcast with Shaun Reilly and he referred to putting in several low ball offers and everything is automated as far as HUD replies/counters. My uncle is going to check out the property for me since it's about a 5 hour drive for me just to make sure it's structurally fine, and to see if he can identify any other issues....he's in construction.
My question to the HUD guru's here, is do I submit a lowball offer right out of the gate? This would be my first deal and first offer as far as REI, so I thought I'd throw it out to the BP family for feedback.
My goal is a $20k-$25k rehab budget going in blind, but knowing the area I know it would sit awhile after the rehab is done. I may be able to get $850 a month for rent after rehab since it's near a college.
Other info about the house: 3/1, 1500 sq', 2 car garage/barn (shady condition from what I can remember), sits on 2.5 acres, and that lovely New England field stone foundation for a basement....scares the heck out of me.
Your thoughts, opinions, and experience is always appreciated!
V/r,
John