REO Listings

5 Replies

I'm looking at a property that's been listed for 225 days. It is owned by a local bank that is itching to get it off the books. Through the grapevine, I know they are getting ready to lower the price down from $35,000. It needs some minimal work to have it rent ready. Just curious, I know what I'm going to offer, but I would love to hear what some of you would offer for this property since its been on the market for so long?
I can give additional information if needed.

Originally posted by @Jody Davis :

I'm looking at a property that's been listed for 225 days. It is owned by a local bank that is itching to get it off the books. Through the grapevine, I know they are getting ready to lower the price down from $35,000. It needs some minimal work to have it rent ready. Just curious, I know what I'm going to offer, but I would love to hear what some of you would offer for this property since its been on the market for so long?
I can give additional information if needed.

We'd need a bit more info, really, like comp.'s, property description, and such.

"Until you know value, everything is worthless."
- Robert G Allen 

@David Dachtera it is a 3 bed 2 bath in a good area. It has new a/c unit, water heater, and kitchen. It is 1900 sq. feet. The comps in the area are one sold for $60,000 and one for $54,000, both were very similar and within a few miles. I believe it's ARV is around $60,000. With it being on the market for so long, I'm not sure how low I could get it for, as I know I could get it for less than $35,000.

@Jody Davis ,

The next question then would be do you have a repair estimate?

With an ARV around $60,000 you'd have to get it close to $15,000 and not put more than about $20,000 into it to do anything better than break-even on a flip.

Depending on area rents, it might make a good buy-hold, but that's more numbers to look up - area rents, owner's insurance, renter's insurance, etc.

Originally posted by @David Dachtera :

@Jody Davis,

The next question then would be do you have a repair estimate?

With an ARV around $60,000 you'd have to get it close to $15,000 and not put more than about $20,000 into it to do anything better than break-even on a flip.

Depending on area rents, it might make a good buy-hold, but that's more numbers to look up - area rents, owner's insurance, renter's insurance, etc.

 Looking at it for a buy and hold.  Area rents are typically $550 to $700 for 3/2's.  Insurance would be $65/month.  I have a guy lined up to rent for $650.  The repairs are estimated at $7,500.  I feel like it could be a great investment.

Originally posted by @Jody Davis :
Originally posted by @David Dachtera:

@Jody Davis,

The next question then would be do you have a repair estimate?

With an ARV around $60,000 you'd have to get it close to $15,000 and not put more than about $20,000 into it to do anything better than break-even on a flip.

Depending on area rents, it might make a good buy-hold, but that's more numbers to look up - area rents, owner's insurance, renter's insurance, etc.

 Looking at it for a buy and hold.  Area rents are typically $550 to $700 for 3/2's.  Insurance would be $65/month.  I have a guy lined up to rent for $650.  The repairs are estimated at $7,500.  I feel like it could be a great investment.

If you're satisfied it will work, go with your decision.