House is really nice brick home, no recent property info, have left message with auction house, they require $5000 down pmt, which i can come up with, 6% buyers premium, and 30 days to come up with balance. This is my problem. Being currently unemployed, and not knowing what their bottom line is to begin with, let alone what my ARV and other costs are going to be, how can I determine if this will be a good deal? I have not officially bought any property for REI, other than the house I live in, so I am unsure how to approach or get further information to help me make a decision. Since I am unemployed, but with good credit, I am assuming conventional financing is out of the question. What do I do in this situation? Do I just wait until I find another job to have the security to get financing, or is there some other way to get financing in a hurry? other family members or friends with money is out of the question, as there are none.
Sorry to hear about your job situation. That is definitely going to kill any chance of getting conventional financing unless you have some other source of income. Even if you get a job you're going to have to have worked for awhile for them to count your income.
Second, you're going to need to figure out the ARV before you can determine if the property is a good deal. Search for recently sold similar homes in the area, within a 1 mile radius, and see what they're selling for. You'll need to know how much it will cost to rehab the property as well and this can be difficult on auction homes as many times you cannot get into the property to inspect them.
Sounds like this might not be the best first deal for you since there are so many unknowns. Keep looking and be patient. Again, you'll need some income, or cash from somewhere, before you can seriously start thinking about buying a rental.
Best of luck!
Remember most auctions are 'as is' so there could be more unexpected costs/surprises in terms of maintenance.
Thank you for the input, I plan to attend the auction just as an observer to see what goes on and possibly do some networking while I am there. I am currently applying for jobs in the real estate market and have one positive prospect in the works currently. I value any advise I get on this site, and absorb as much learning as I can.
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