I have recently been looking into purchasing a HUD for my first investment due to the reduced price. I would the opinions and experiences others have had with purchasing HUD homes. Do they make good rentals? Or is it better to flip the house? I see my self as more of a buy and hold investor so would HUD homes be a reasonable option?
It's all about price and condition. Doesn't matter who is selling it. HUD homes can be good deals but I've often seen them not be good deals as well. Ask for a Property Condition Report. They don't usually have sellers disclosures but this is the closest thing to it. Know that if things are broke and your lender requires them be fixed for financing they have to be fixed and you're not allowed to do them typically and HUD won't usually do them. It magically has to get fixed to finance occasionally.
Also they often have a 15-30 day period for owner occupant only. IF it isn't sold in that time period there is a reason figure out what that reason is before making an offer. I'd rather find owners to sell them to me before they go to HUD but that is more difficult.
@Matt Cramer thanks for the advice.
Just because it is a HUD home doesn't mean anything. They can be good and they can be bad. Just depends on the condition and price and what makes the most sense money wise.
HUD homes can be valuable purchases. I have sold quite a few. There's lots of information on their website in the HUD home store. Including property condition reports. I wouldn't rely solely on these. Always inspect the property in person. Find an experienced agent that has done HUDs. Some of them can even be repaired using FHA financing depending on the property. Don't be afraid to offer less on investment properties. ð
Thank you both for the valuable information @Arissa Pedroza and
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