Latest HUD deal

[Jon Klaus]

I sometimes read posts about how to buy HUD foreclosures and how to bid. Here are the numbers on one I just contracted today.

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

[Mark Yuschak]

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.