All Forum Posts by: Steve Paczesny

Great, thanks. I'll bid on both then. Wish me luck!

Hi I have a question on HUD properties. There are two places I'm interested in. One property is a day-to-day auction. For the other one the bid is due tomorrow by midnight. I'm more interested in the one that is due tomorrow by midnight, but the one that is day-to-day is a close second. I was wondering what would happen if I bid on both places, and won the day-to-day one. Would HUD still look at my bid for the place that's due tomorrow night? Would I be able to walk away from the first one I won to purchase the second? (assuming I didn't give them my earnest money yet). Thanks.

Ron Climer, yes I would be buying it to rent. But I'd be living there as an owner occupant for at least 2-3 years - this would be my first property. If this place was a house or two away I wouldn't care, but being right next door...I can imagine a high tenant turnover rate, and I'm not sure if I'm required to disclose this to potential tenants or a future buyer if I sell. Maybe if I can get the bank to drop the price enough, then buy the building in a few years that is currently the halfway house and convert it to rentals...hmmmm.

Yikes, Karen, glad you are ok. That is scary. I agree with you, in that I have a ton of sympathy for mentally ill people, and I wish them nothing but the best. Just not right next door.

Yea I suppose it is a bit funny :)
My gut is telling me to walk away. It's my first property and I'd be owner occupant, living with my gf upstairs and renting out the lower, would be a couple years before we were planning on moving and renting both units if we got the place. I'm honestly more concerned for her, as she is an attractive 23 year old....I'm sure nothing would happen but if it did i couldn't forgive myself. Funny thing is she's telling me I'm over-reacting and it's no big deal (she's not the one buying it though). Plus then there is the resale issue, renting issue (do i have to disclose?), etc...not to mention they give me the willies.
Funny how emotions can change so quick in this. I've been fighting to get this place for 2 months (issues with bank not wanting to lend), and was super excited this morning going to home depot planning everything out....sigh. Oh well, next!

It's a good deal. 75k for the duplex. Market rent is about 750, so I'd meet the 2% rule. I'd likely be putting between 10 and 15k into it though, so then would be about 1.7%. But I don't know what my obligations are to disclose this to potential renters now that I know, I'd probably pass if I was a tenant. I also don't know that I'd feel totally safe for my girlfriend who's living with me (we'd be owner occupants for at least a year or two before renting out both units), as the people next door are allowed outside unsupervised during the day. Likely nothing would happen, but I'm just not so sure I'm willing to take that risk.

Sorry, this is a repost (I realized my original didn't have a descriptive title so I changed the title).....

Ok, so I was supposed to close on a duplex this upcoming Thursday. Today I'm over there outside looking at the place figuring out what I want to do with it, and start taking to one of my potential neighbors. He asks me if I know what is the deal with the place next door, and I say no - honestly I thought it was a regular apartment building. Turns out it's a halfway house for bipolar and schizophrenics. I looked it up and a few years ago one of the patients there stabbed and killed another patient. The place is right next to to the property I was going to buy (across a quiet street), with a bunch of windows facing the duplex. I was over there today and a guy was just sitting outside staring at me and my girlfriend. Creepy. I can't believe I almost bought this place. It sucks because it's a foreclosure and a great deal...but I gotta walk away....right?

I had to get bids on the roof and put 1.5x the estimate in an escrow account to get financing with it needing a new roof.

Hello,

I'm in escrow on a foreclosed duplex with Freddie Mac, this is my first property.

Initially they were asking 95k, then dropped it to 85k after it was on the market for 30 days. I offered 78.5k, and they counted at 81, which I accepted (based on inspection and financing contingency). The place needs a new roof (which I knew going into it) and has some minor maintenance/updating needs, but it's what I was looking for - something I can add some value to.

I went though UWM Credit Union for financing, where I qualified for a 5% down conventional loan. My appraisal from them came back at 89k, but they ended up NOT lending on the property, due to the roof needing repair and a couple other maintenance issues.
So I decided to give the place one more shot with a different lender, ended up going through US Bank with a 20% down conventional loan. The appraisal came back today, at 75k. Which is 6k less than purchase price.

Now I'm not sure how to proceed. I'm surprised to see a 14k difference between the two appraisals. I haven't talked to my lender yet (they emailed me the appraisal tonight), but from what I understand a bank will not lend on a property if it comes in under appraisal, and I don't have the cash to throw down an extra 6k to make up the difference.

Would you think my best option is to tell the bank to drop their price to 75k or I walk away? That's what i'm thinking of doing. Any advice would be greatly appreciated. Thanks.

Well, I stopped by today and talked to one of the tenants there. She said she personally didn't have the lease/wasn't sure of the terms and that the person who did works 3rd shift and I'd need to stop by later (I believe it's her mother in law). I asked her if she could look for it by the time I have the inspection done Wednesday morning. More wait and see I guess.