Does anyone have any experience with invest in HUD Properties? I want to flip HUD homes. I just received my RE license and I think HUD may be a great option. I want to bid on homes every day and try to catch a good deal. What are you all's thoughts?
Definitely a good place to find deals. Also check out Homepath.com and Homesteps.com they are other government owned foreclosure properties. I have found no problems dealing with them.
Thats a very tough niche in our area....
Most of the decent homes go to OO buyers and the very few that trickle into the Investor phase get some really high bids. We have managed to get 2 HUD properties over the last 2 years.and I think it was just being lucky.
OO is owner occupied, houses you purchase to reside in. They get preference over investors.
I picked up a HUD OO last year. Was going to wait a year and sell, but my wife fell in love with the home. There were about 10 bids on our home. We went this route because we couldn't find a deal on the MLS. The market is too tight.
If you want a deal, then you will have to put boots on the ground.
@Matt M. - In my area, HUD homes are also "on the MLS". Are they not that way in your area? I've bought several, and to me they are pretty much like any other MLS-listed REO - except that you have to make the offer on their website.
@Bryan L. HUD homes are on the MLS here in Denver. What I meant was every "deal" or short sale, or handyman special was getting bid up on the MLS. We found our HUD home on the MLS, & were only able to get it during the OO period. Even then, there were multiple bids. I ended up not taking a commission which made our offer improve. It also helped that the HUD appraisal didn't take into account the 100% finished basement, so unless you saw the property, you would never know it was there.
Our appraisal came in $10 short (yes $10 as I bid $10 over an even number). We had some great comps come in at $70k+ what we paid so far this year. So we are looking to refi & get rid of PMI, lower rate, etc.
Rashad...Planning on living in the home? As others have mentioned, HUD homes are often snapped up by Owner Occupants and if they aren't, there's a number of hunger investors in my neck of the woods (Richmond county GA) waiting to bid on these. I can remember a time when HUD homes sat forlornly for a while; no longer.
My youngest son just purchased his first HUD (will close in several weeks); plans to work on it, live in it and when the time period required by HUD has passed, turn it into a rental and move on to invest in other foreclosures, hoping many of the new investors have gone belly up (or mom has now become so senile he gets all my houses).
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