Out of State REO - HUD
exit strategy - buy with 100% financing (HML perhaps) rehab and sell.
In good area of country with growth very high and very close to a major city (within 8 miles).
3br, 1 ba, kitchen, laundry, living rm
tax values: 61,400 bldg 7600 land
estimate from Zillows.com - $95,262.00 (don’t laugh, it’s all i’ve got right now)
recent homes sold in area [comps on location, sales price, and age]
4/06 - 81,000 - $20 more per sq ft comp
1/06 - 82,500 - unknown sq ft comp
2/06 - 35,500 - $40 below per sq ft comp
12/06 - 78,000 - $1 less per sq ft comp
for entire list of comps, the average seems to hover around 62k but this is very scewed as many of the properties have been sold recently real cheap (probably other reo’s).
We will fly there to:
do the work
and realtor will sell for us
figuring 15,000 in rehab costs:
taking the lowest estimated value:
83,000 ARV X .7 - 15,000 (rehab costs) = 43,100
So i’m figuring 45k is not a bad price to pay.
Total projected cost out of our pocket:
CC’s - 1500 (purchase and resale)
Net Profit = uummm…$4050.00
the Misc i factored 15% of 83,000…is that too much?
also, the rehab costs may be high to very high as per the realtor.