Too conservative with my offer on a 2/1 foreclosure ??
Now, here I am. I'm ready to pull the trigger. I've done the research, read countless BP posts from some very insightful individuals and have swallowed most of my fears. I have viewed and ran numbers on a handful of homes in the last few weeks. I have narrowed it down as a first time purchase to a 2/1 solid home; good location for same size homes, brick/vinyl ranch, built in 1940, HVAC installed already, original hard wood throughout home, roof in great shape, wiring up to date and plumbing is manageable for repairs. It does need some paint and updating but I figure that renovation costs should be less than $8,000. It is on the market as a foreclosure for $43,900, and I have made an offer of $30k. I have access to a 100% loan from a close associate with interest payments of 4.25%/month until home is sold (I am seeking to flip). I also have a 15% down 85% finance at 4.75 opportunity through a local bank specifically for REI. The foreclosure was for $59,600 and tax appraisal is at $63,400.
So recap
Market listing $43,900
Tax appraisal $63,400
My offer. $30,000
Renovation. $8,000
My question is based on these numbers, if I could guarantee a done deal at 35k, am I crazy for allowing a little time to play out with a 30k offer that may or may not be accepted or countered (this is a bank owned property)
Thanks ahead of time for opinions and advice!