HUD House for sale
There's a HUD house for sale in my area for 22k. How do I determined if it's a good deal or not? I'm still learning..
Most Popular Reply
Many hud homes are good deals and others can be a disaster. First you need to ask yourself what you want to do with the property (hold, flip, etc), then if you want to hold are you in it for cashflow or appreciation? Once you know the answer to those questions learn your market ( what are going rents and vacancy rates, what is the resale market like, etc.) Compare this home to other comps in the area and don't just jump in because 22k sounds cheap. Many hud homes especially in places like Michigan have sat vacant for long periods and were not properly winterized so you run a good chance of issues like broken pipes. Ask your agent for a property report. Do your best to estimate what all the costs to get it ready to rent or sell then decide how much you can pay.