HUD Turned Down/Then Accepted Terms

[David Moore]

My LLC made an offer on a 2 bedroom 1 bath home in Albert Lea, MN.  The home needs a $1500.00 sump pump and about $1500.00 in roof repair.  Other than that, it needs nothing.  Similar homes in Albert Lea sell for $55,000 to $75,000.00.  

Listed price $47,000.00, on the market now for 48 days. My LLC offered $37,600.00, exactly 80% a week ago. On Tuesday, I learned from my realtor that HUD countered at $41,500.00. We chose not to increase our offer, and we pulled the offer. Today, my realtor calls back, saying HUD decided they will take my offer, if I am still interested.

It will rent for $650.00, tenant pays all utilities save water. Cash flow, calculated on this site, will be $248.00 per month. It is already a pretty good deal, but not quite a 2% winner. I would like your advice. Lock up the HUD at $37,600.00 or counter with a lower offer. What would my fellow BP investors do in my place? I have more potential renters looking for a home, so I'm tempted just to get this one in the boat.