Buying an REO, need help running the numbers.
Hello everyone, thanks for the help in advance.
I am looking to purchase a foreclosed property, the property is currently listed for $104k. My last offer for $85k was rejected, the property is in a generally good state, might need a new roof in a few years with approximately $5k in immediate repairs.
After fixing the rent on the property will be at $1,200. With mortgage and expenses around $800. The neighborhood is older (1970s) and has held value for a long time. If I purchase even at full price the value after repairs is around $125k.
I plan to use another rental I have in the same neighborhood (worth $150k) as collateral for the down payment. My income is only around $1,900 per month (I am in graduate school right now).
Just wanted to get some initial thoughts on my situation? Can I get financed? Thanks!