I'm just starting out and in search of my first investment property in Rochester, MN. I've listened to many many BP podcasts, read Brandon's little to no money down book, and done hours and hours of research but still have so much learn. I found an experienced 203k lender in the cities and have a list of possible HUD consultants.
I'm mostly looking for duplexes (but not opposed to SFH's, though I think this will be a slower process since I will need to occupy for a year). I may have to be more patient in finding that *great deal* in my market, but I'm realizing foreclosures might be the route I should take in order to find the right deal. I need to talk to my lender but I thought I'd give a shout out to this community in hopes I can get some advice/opinions on using the 203k loan for foreclosures. What should I know? Am I limited to certain foreclosures since I will most likely be using a 203k loan? Any advice or tips/tricks is greatly appreciated - thank you!
@Marie Edwards The 203k loan would be a great option for a foreclosure. What price point are you looking in? Many bank owned homes are so cheap that they get inundated with cash offers. So, it's not that the bank won't take your financed offer, but if they have other offers that are equally as good, but cash, they will always take cash over financing.
Thanks for the reply @Dawn Brenengen ! That is definitely one thing I am concerned about. For a single family home, I think we'd shoot for an ARV of ~170,000 so in the ideal world, rehab costs + what we buy the property for would be around $119,000. If we aim for a "higher" priced foreclosure that needs less repairs, I wonder if the cash buyer competition would be less? Perhaps that logic makes zero sense..