Foreclosure property questions

2 Replies

Hello 

Today I looked at my very first foreclosure property and to my surprise it was worse than I expected. The roof structure was caving in, the dormer was not put in right and showed signs of leaking, floors where very oft needing a complete replacement, furnace and water heater was under water and now needs to be replaced, the downstairs basement had signs of mold.

The positive side of things was the lot, the lot was very large.

So my question to the community is

(1) Is this normal in foreclosure property?

(2) With something like this would it be cheaper to knock the structure down and start from scratch?

Ask your trusted contractor& another 2 more contractors to walk through with you and estimate the cost of fix 1st to see if it is within your Budget and time.  Have them to give you a bid for rebuild too.  Then find your next step from there. 

Then you can do a ARP pricing Analysis and wholesale it to someone if you don’t want to do any work. Or project the cost breakdown of rebuild base on your time and resource to rebuild or fix it.  There is holding cost and unexpected expense for both fix and rebuild. I have a friend who built a Brand new home about three months because he is in the business for a long time, his Superintend itknow the city Schedule& Worked with subcontractors Efficiently. 

So depends on your goal and resource. 

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