Newcomer to investments, looking at first purchase
Hello,
It's great to be here. Been reading books, BP articles, listening to BP podcasts. First, what a great and valuable resource I've found BP to be, and I plan to remain right here throughout my journey. As Brandon Turner says in his book, "Rental Property Investing", my switch is flipped and I'm ready to take action! I wasn't sure what category to place this question, so maybe somebody can direct me? Here's my question....
I was originally looking at this property as a long term rental, and possibly a BRRR as I have the working capital to do so. However, the more I have researched, the more I think the best option is a flip, mostly because of the location and extremely low price I "think" I can purchase for. The biggest obstacle is it needs a new sewer line run before the property can change hands (cost estimate $15,000). The cost doesn't bother me as I have incorporated that into my rehab calculations and it still works. The house has been sitting almost a year, and I think that's why.
It's a bank owned house and the previous owner is deceased. I spoke with the tax collector today and he said the owner had a reverse mortgage and all taxes are currently up to date.
So finally, here's my question....when making an offer to a bank owned house (with the reverse mortgage in mind), would they be more inclined to accept a lowball offer? And I mean a very low ball offer. I'm thinking they would be happy just to get this place off their books? But my inexperience poses the question.
Thanks in advance for any feedback!
Steve