reo without internal access bid limit

[Jody Roussel]

Hello fellow BP people 

I am getting ready to put in a bid on a foreclosed property that is currently occupied, according to realtor/ zillow current home value estimate is just shy of 144k. 

it is a 2 unit property with estimated rental income of 1250-1350 per unit

whats the highest bid you would offer without access to inside?

Thanks!!

[Andy Mirza]

@Jody Roussel First, I wouldn't rely on Zillow for a valuation. You need to have a really good idea of value through your ability to value comps.

With any rehab, you need to set a realistic budget for repairs. Without looking at the inside, I would assume that it would need a full cosmetic rehab. It's probably not a full gut to the studs since someone's actually living there but you might be surprised at what kind of conditions some people will live in.

On top of those numbers, add in some extra for cash for keys or eviction depending on which route you'll have to go as well as added holding costs while you perform one of those actions.