Time to Pull the Trigger Charleston South Carolina
Hello again BP,
I am starting out in real estate investing and I have come to my first (of many) crossroads on this path. My question is just because a real estate agent says a property is in the short sale process and the bank has an approved amount does that mean that is the lowest the bank will go? Let me from the situation a bit.
I walked into a duplex today that has 2 units each 3bed/2 bath and each was 1200 sqft. The place was in complete disarray and needed some serious work. Im talking new HVAC, new roof, floors, all appliances, one unit needed new floors (tile cause it can take abuse), mold spots on one wall behind bathroom and to top it all off the previous owner must not have known how trash cans worked or they were a hoarder. So, low ball estimates for repairs are around $25000.00. Im looking to buy and hold this property and rent it out once up to date, but I cannot in my right mind give a full price offer on this. I am thinking about going in at 50% offer and hoping that they will accept but if they cant I hope they counter and just don't ignore my offer completely.
Further, the area this is in is literally a block away from a very nice neighborhood that showed some good signs ( kids playing outside, nicely kept yards, no abandoned properties, no police activity and respectable rents), but this unit kind of sits in a pocket of "potential" to put it nicely.
Help me out guys and gals, I am itching to pull the trigger and get a project started, the numbers work but this project becomes much more attractive if I can get the property for ever less because its a disaster.
Ohh yea, the bank wants $85K for the property as is. ARV could be $125k.
Thanks
Chris Armstrong