New to Real Estate · Granbury, TX · Member since 2020 · 13 posts · 3 votes
I am analyzing a HUD property that is open for bidding tomorrow. First off, are HUD's even worth investigating? This one would need a massive overhaul--a complete rehab. When I analyze it as a BRRRR, the investment is negative cash flow, but when I analyze it as a fix and flip, it could be profitable. I'm new to all of this and I know I have a lot to learn when analyzing deals. Is this possible for it to be profitable using one strategy but a bad deal using another?
@Stephanie Cessna different deals make sense for different strategies. Kudos to you for looking at things multiple different ways to see what works. Some markets lend themselves better to certain strategies as well based on cash flow, appreciation, etc. As for HUD homes it's possible to find one that makes sense I've don't a couple that made sense to BRRRR but I've noticed in the last 6 months the listing price on these has increased in my area. Now many of the don't make sense. But keep searching and looking at things in different ways, that'll serve you well