Latest HUD deal

3-2 DW mobile home on one acre
Tax value -- $67K
Original HUD asking price -- $50K (June 2009)
Later dropped to $40K
Someone contracted it at ??
Fell out of contract and was relisted at $30K (Dec 2009)
Passed bid deadline with no contract
I bid $20,350 last week and contracted for that price today.
Needs @ $7K to make perfect.
Should rent for $800

I have a bigger one on the same street rented for $950

Edited: 06/26/2010 at 11:06AM

Kevin C.

Real Estate Investor · North of Dallas, Texas

329 posts
2611 Influence
3 Awards

Icon_minipost Jan 05 '10, 01:34 AM

Congratulations Jon.

Only a few days into 2010 and you already have one on the books!

Edited: 06/26/2010 at 11:06AM

Claude Hodge

Real Estate Investor · Castle Rock / Ft. Carson, Colorado

111 posts
349 Influence
2 Awards

Icon_minipost Jan 05 '10, 08:40 AM

Jon, is that 800 a month rent, plus the renter pays the lot fee? Just curious, because sometimes I see great MH deals, until the lot rent cancels out any potential cashflow.

Edited: 06/26/2010 at 11:06AM

Jon Klaus

Real Estate Investor · Dallas, Texas

2431 posts
48420 Influence
14 Awards

Icon_minipost Jan 05 '10, 08:49 AM

The land is included-- there is no lot fee as it is not in a mobile home park.

Edited: 06/26/2010 at 11:07AM

Mark Yuschak

Rehabber · Grand Blanc, Michigan

713 posts
4946 Influence
10 Awards

Icon_minipost Jan 05 '10, 09:28 PM

Great score!

That's exactly how I've gotten every one of my HUD properties. I follow the exact process you did and in the end I end up with some awesome deals. Since I'm an agent I can watch them come and go form the market, then strike when they fall through and are relisted.

IMO, HUDs are some of the best deals out there, if you watch them closely.

My latest HUD house I picked up for $3,150 and it's in a $25,000 neighborhood. Already have four applicants who want it for $400 a month (and it's not in the getto).

Good work!

Edited: 06/26/2010 at 11:07AM

Jon Klaus

Real Estate Investor · Dallas, Texas

2431 posts
48420 Influence
14 Awards

Icon_minipost Jan 28 '10, 04:34 AM

I just closed on this house. Closing was set for 3:00PM and I was out at 3:06. I'll update through the rehab and leasing process. I did a walk through yesterday. We'll probably look at it with our contractor on Monday morning.

Edited: 06/26/2010 at 11:24AM

Tod Radford

Real Estate Investor · Southlake, Texas

706 posts
16318 Influence
12 Awards

Icon_minipost Jan 28 '10, 08:09 AM

Congratulations! I'm looking forward to hearing how you rehab/lease!

Edited: 06/26/2010 at 11:24AM

Tod Radford, Thompson Realty Corporation
Telephone: 817-781-1942
Website: http://www.thompson-realty.com
radyakllc@gmail.com http://www.thompson-realty.com

Mark Yuschak

Rehabber · Grand Blanc, Michigan

713 posts
4946 Influence
10 Awards

Icon_minipost Jan 28 '10, 09:21 AM

Originally posted by Jon Klaus

I just closed on this house. Closing was set for 3:00PM and I was out at 3:06. I'll update through the rehab and leasing process. I did a walk through yesterday. We'll probably look at it with our contractor on Monday morning.

Awesome! What you just experienced is one of the many reasons why I love HUD house investing!

Edited: 06/26/2010 at 11:24AM

Tod Radford

Real Estate Investor · Southlake, Texas

706 posts
16318 Influence
12 Awards

Icon_minipost Feb 08 '10, 05:25 AM

Hi Jon,

I've gone to the HUD properties for Texas website a couple of times now to look around.

How did you know that your property went under contract, then fell out?
Did you just add to the Watchlist?
Can you see the history of a property, or did you just watch it online?

Edited: 06/26/2010 at 11:33AM

Tod Radford, Thompson Realty Corporation
Telephone: 817-781-1942
Website: http://www.thompson-realty.com
radyakllc@gmail.com http://www.thompson-realty.com

Mark Yuschak

Rehabber · Grand Blanc, Michigan

713 posts
4946 Influence
10 Awards

Icon_minipost Feb 08 '10, 07:32 PM

Tod,

I just familiarize myself with the properties which are available. Eventually a deal will fall apart and it'll get relisted. In MI there's no way to setup a watch list on the HUD site - I just glance over the site daily for all new activity.

Edited: 06/26/2010 at 11:34AM

Tod Radford

Real Estate Investor · Southlake, Texas

706 posts
16318 Influence
12 Awards

Icon_minipost Feb 09 '10, 01:20 AM

Thanks Mark. I've noticed the Texas website has the ability to "Add to Your Watchlist". I assume you inspect prior to bid? How do you know that utilities are working properly if they are turned off?

Edited: 06/26/2010 at 11:34AM

Tod Radford, Thompson Realty Corporation
Telephone: 817-781-1942
Website: http://www.thompson-realty.com
radyakllc@gmail.com http://www.thompson-realty.com

Mark Yuschak

Rehabber · Grand Blanc, Michigan

713 posts
4946 Influence
10 Awards

Icon_minipost Feb 09 '10, 02:03 AM

Honestly, I've never walked a property before bidding. My bids are so low that there's really nothing which will scare me if a bid is accepted. I bid VERY low and put in a LOT of bids.

There is a synopsis of major repairs which a property will need, as found by the HUD inspector on each property's page. The only thing I try to stay away from are foundation issues.

I've never found utilities to be on in a property prior to inspection. I do my inspections with the utilities off, too. Like I said, I bid planning on worst case scenario anyway. If something isn't broken or bad, all the better.

Edited: 06/26/2010 at 11:34AM

Tod Radford

Real Estate Investor · Southlake, Texas

706 posts
16318 Influence
12 Awards

Icon_minipost Feb 09 '10, 02:12 AM

Thanks Mark. I'm starting to look on a regular basis and am planning to use your's and Jon's low bid approach!

Edited: 06/26/2010 at 11:34AM

Tod Radford, Thompson Realty Corporation
Telephone: 817-781-1942
Website: http://www.thompson-realty.com
radyakllc@gmail.com http://www.thompson-realty.com