Updated about 13 years ago on . Most recent reply
Looking for Advice on REO purchase
I have found an REO that is selling for under $1000, is appraised by the county for around $19,000. The property is said to be unusable because of flood damage. I'm wondering if this is something I should pursue. I'm not sure anyone would want the house but it does sit on about an acre of land. Is this still a good deal? I welcome all input.
Most Popular Reply
The county appraisal does not mean much as many times those are inflated for the purpose of keeping up tax revenue.
If there is flood damage the first thing that means is that it's in a flood zone so you should find out what are the insurance requirements for it and what kind of building restrictions there would be since you would probably need to tear down the current structure and build again.
The second thing you need to do is research. What has sold nearby recently and if there is anything on the market. Then of course start looking for potential buyers if what you want is to sell the land.
You do need to provide more detail in order to get more help from this forum but be aware that just because it's cheap does not mean it's a good deal.