Potential HUD Rental - Analysis on HUD Process and Deal Overall
My husband and I are looking at our second rental property, a 3/2. It is currently being offered through HUD for $75000. The bidding for non-O/O starts this weekend. It was foreclosed a year ago at $103k and has gone under contract at least twice. Those contracts were cancelled due to "too much work".
There is termite damage in the house. It would need new flooring, doors, some windows, drywall and trimwork. However, HVAC looks to be in good condition, roof as well. Good neighborhood in North Charleston near Charleston Southern University. We would plan to rent, with comparable rents in neigborhood starting at $1100. Comparable homes in the area are selling for $125k to $150k.
Our lender is offering us a portfolio loan, 20 year, 5% interest, and we could wrap our repair cost into that mortgage, estimating $20 to $25k in repairs, most we would do ourselves.
Does anyone have any suggestions for the HUD bidding process? We were thinking of going in with with an offer of $69k, with no closing fees included. However, with several previous offers following through, and being new to this, we weren't sure. Any thoughts?