I have found a great investment property. It is going to auction in less than a month. I would give my right arm to live in this house. It is way undervalued and I am sure that as the market goes up in the next couple of years that this property can have a $200K+ ROI. My question is: I can not afford this property unless absolutely no one else shows up! It's appraisal value is $1,233,800 but is worth over $2M. The house next door is valued at $4.7M. I am trying to find out if there are any investors that are willing to purchase at auction, allow me to live there for 2 years, I do all the repairs and updating that it needs, pay rent, and when the market is right then sell for a profit. I have ran the numbers on BP and although it is a loss for approximately 2 years the ROI I think will be a min. of 50% closer to 90% or higher depending on what it goes for at auction. The property will increase in value it is on a lake. Are there any investors that are willing to do something like that?
Regarding "It's appraisal value is $1,233,800..." How did you get the appraisal? How recent? Do you know the owner? What kind of auction? Estate auction? Foreclosure sale? And regarding "... but is worth over $2M." No. It is worth the appraised value.
"I do all the repairs and updating that it needs, pay rent, and when the market is right then sell for a profit." You say you are a renter and buyer in the same sentence.
I'd put the odds of you getting a lender (at arms length, not family) at about zero. Too many red flags from what you've provided.
Originally posted by @Sherry Patterson :
I have found a great investment property. It is going to auction in less than a month. I would give my right arm to live in this house. It is way undervalued ... but is worth over $2M..... Are there any investors that are willing to do something like that?
Ok using your value of $2,000,000 are you going to pay the $20,000,00 per month that the property should rent for? (1%)
Or are you only going to pay a bargain rate for the two years of $10,000.00 per month? (0.5%)
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