Is this property worth the trouble?
Ive come across a HUD home and took a walkthrough last week with my agent. I like the property a lot. Its a 2.032 sqft 4bed 2.5 bth in a quiet neighborhood right outside of the Air Force Base in my area on corner lot.
Here are my concerns:
1) The dishwasher seems to have leaked and damaged the floor boards. My agent and I have stepped on the damaged areas but the floor boards dont seem to be damaged all the way through. The boards are soggy on the surface. I believe that this can lead to termites and extensive moisture damage in the structure of the property. Im not sure how much this can cost me to repairs.
2) HUD provided a document that vaguely lists the repairs needed for the property. The one that made my agent and I second guess the property was the roof. The document says "Roof Inspection recommended (damage to main support trusses observed)...".
3) The document also states that the HVAC needs to be connected. My guess is that it needs to be replaced. its pretty rusty
These three are the biggest issues that I am concerned about. Everything else in the property seems pretty manageable with a FHA 203k loan (which the property qualifies for).
HUD is asking $157,500 for the property and I know that a 4-2.5 in this area is easily worth $200,000+ ARV. Im just not sure if these repairs are worth the trouble