20k REO Country House

3 Replies

Looking at an REO house in the country about 6 miles from town. Looks like it has been listed for a few months. Two recent price reductions in the past 45 days. 39k-29k-19.9k with the last two reductions coming within seven days of each other. I'm really considering picking it up as a flip or rental but can't decide which way to go with it. I have a HELOC that I would love to pay off with a quick flip. This would give me some freedom in future deals in addition to cash reserves. I'm thinking that this might be the way to go instead of BRRRR which would hold my cash reserves up until I could refinance. Thoughts from the crowd? Also, looking for a strategy to approach an obviously motivated REO sale. Complete low ball offer? Worst they can say is no I suppose.

3 bed 2 bath, 1050 sq ft.

ARV: 70k

Monthly Rent: 700-800

Estimated Repairs: 15k

In my experience, those large cuts are normally due to findings during inspections from past potential buyers. For instance, a person offers a lowball offer to the agent and justifies it with a sewer/well inspection report stating that the property needs new drain fields or well. They decline the offer then cut the price and disclose the inspection findings. I suggest contacting the agent or using yours to get the skinny on the deal. The agent only remarks in the MLS will probably provide some insight into the reductions.

@Joseph Gamatoria Thanks for the insight. That's a great idea. I already have a call in to my realtor to find out the details from the MLS listing.

@Joseph Gamatoria Thanks for the insight. That's a great idea. I already have a call in to my realtor to find out the details from the MLS listing.

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