HUD for fix and flip?

Question

Looking to do my first flip this year. I’ve had a few opportunities presented by wholesalers but nothing stuck. Feeling like I’m waiting around for a deal, as I’m not seeing many deals from wholesalers. I would like an effective way to find deals. I’ve done some cold calling and driving for dollars, doesn’t seem to be worth it. Should I look for HUD homes?

David Niles · Answer

You also have to make sure the HUD listing is out of the owner / occupant period, which in most of my personal followings have seen the real deals all disappear during this period.  I know alot of investors gambling and buying during this period illegally BUT not something I would ever try, if they catch you, the fines are huge.

Jaron Walling · Answer

Like @Randy Rodenhouse mentioned with the limited housing supply right now there are equally limited HUD homes. We made an offer (low) on a distressed HUD property last summer and were quickly outbid by conventional buyers. There was 7 or so properties on the website but only 1 in our target areas. I'm not sure how it qualified for loans... but it didn't matter because numbers were way off for a LTR or flip.

Andy Sabisch · Answer

We have bought properties from HUD as well as the VA, auction sites such as Hubzu and Auction.com and done well in the end.  As Randy said in he previous response, make sure of your numbers to see if the deal is a deal or priced for an end-buyer to buy it.  We had a home run off of Hubzu last year but you really need to do your homework.  There have been a few that were listed as vacant yet driving by, there were people living there and clearly not ready to leave.  Unless you want to deal with the people that are squatting through cash for keys or eviction, I would stay clear of those properties.

Randy Rodenhouse · Answer

There's a limited number of homes for sale from HUD and you'd have to look at the extended ones only. I only see four on HUD right now but you could bid on those if you have the cash to do so. Make sure you're buying the property low enough so after all repairs and expenses you can make a good profit.