So I just placed a bid on my first house ever last night. It was a HUD home priced at $133,000 but it was on the market for over 100 days so I offered $125,000 because I know that HUD homes don't sell for toooo much lower since they're government owned houses and the bid was accepted! So im wondering if you guys think I overpayed? I went to the open house on Saturday and checked everything out and the main things that need work are a brand new kitchen, it could need a new boiler (the boiler room was locked at the time but we will see it before closing and during our inspection period) and the electrical is messed up, the rest is mainly cosmetic. I saw the comps in the area and they go anywhere between $185,000 and $299,000! so im wondering if worst case senario we need a brand new boiler, completely revamp the electrical and put in a brand new kitchen do you think this is still a good investment? I would love any feedback you guys have I am both excited and insanely nervous.
Congrats on your first contract!
You did not post enough numbers and information about the property to make any suggestions or to have an idea of the deal. However, I'd recommend to use PB rental property calculator if you are planning to keep the property, or flip calculator if you're planing to sell. Hope it works out well for you and you get a great deal!
I agree with Yuriy that it's hard to say if it's a good deal without more information and numbers.
My first property was a HUD home as well and I had the same feeling as you. Did I over pay? Would they have accepted less? I'll never know. But the numbers make sense regardless. There is a good thread on BP if you search for "The Best kept secret for bidding on HUD homes" that goes deep into HUD acceptance threshold." Maybe check that out for some more information.
I also did a blog post about the threshold as well.
Congrats and good luck!
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