First possible distressed home purchase

2 Replies

So today I went and looked at a property in ct. The homeowner is separating from partner and owns the house solo she lost her job and will loose the house no matter what. It is A 3 bedroom 1&1/2 bath ranch. The homeowner bought it for 160k in 2012. She currently owes 145k. Comps in the area are 180-200 average(with updates). The work needed is tile in kitchen, new cab,counter tops, both bathrooms need to be gutted. Rugs in bedrooms windows are older. The good: house has updated electrical, siding, plumbing appears newer, new roof in 2011, updated furnace parts(not new) hardwood floors in all areas minus the bedrooms. Large basement unfinished. I think the house is worth less than the 145 owed can I get it appraised and offer the bank less to purchase the mortgage from them? Is there enough room in there at 145 for the flip to be worth it? Please advise it is ver much appreciated.

@Steven G. At 145k w/ a 200k ARV this is not a deal, especially with the repairs you listed that need to be done.

Keep at it though.  The only way to learn what is or what is not a deal is by going out and looking at actual houses and running the numbers.  You will find one that makes sense if you are diligent, getting out and doing it is more than half the battle.

Medium rzt hc 6483Michael Noto, SalCal Real Estate Connections | [email protected] | 860‑384‑7570 | https://www.zillow.com/profile/Mike-Noto/

This is going to have to be negotiated with the bank as a short sale to make any sense. My suggestion is to get contractor estimates and find an agent or investor with short sale experience to help you with the process. You may be able to negotiate a sale price lower than the 145k loan amount that would make the deal work. Good luck!

Medium rpm logo small jpg web optimized   white bgDaniel Raposo, RPM Homes, LLC | [email protected] | http://www.rpm-homes.com

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you