Potential First Deal in Cleveland, and it's a HUD - Please Help!
Hello all!
I'm reviewing numbers on a potential deal in the Cleveland, Ohio market, and could use some help. The house is a HUD in University Heights, and was listed a couple days ago. I went through the property the second day it was listed, and was surprised about the condition of the house. With the exception of some electrical and plumbing (as listed on the property report), the house could be moved into. It has all brand new paint and carpet, as well as appliances. The plumbing seems to have been repaired in a handful of places (drywall was removed, and new copper fittings are in place). Roof, furnace, and A/C are all in good condition and reported to be functional. I've run some numbers for flipping it, and even acquiring it at the listed price, I should still be able to make a decent profit, approximately 20% of the ARV. An alternative to flipping, which would help me in a couple ways, is buying it as an owner occupant, living in it for 2 years, doing a slow flip, and doing the no capital gains tax strategy. I'm also trying to decide if I should do traditional mortgage on it, or an FHA loan. It is still is in the first 10-day period open to owner occupants/ teachers/ etc., which would give me an advantage before other investors can snatch it up, and it would be my first home I've ever purchased, if that counts for anything. So what I'm looking for from you, the greatest RE community, is some guidance on which strategy I should go with, and / or more details about HUD homes.
I'd love to connect with people who have:
- Gone through the process of buying a HUD home (so I could get a step-by-step)
- An agent that specializes in HUD homes (I've heard too many stories of unqualified agents dropping the ball)
- Experience in the University Heights market (I've been looking on the west side mostly)
- Experience with FHA / 203(k) loans (to go over finer details)
I would be extremely grateful if anyone could help at all. Feel free to comment, or send me a private message, and I'd be more than willing to share my numbers, and go over some other specifics. Only 7 days until bidding is open to investors!
Thank you in advance, Tom Kuhen
Key words : Ohio, Cleveland, Cuyahoga County, University Heights, 44118, HUD, FHA, 203(k) 203k,