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.
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!
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