In the game now

Well, after 3-4 months of reading, talking and looking I have made my first offer on a fixer-upper.

Here are the numbers:
Listing Price $129,900
Comps $150,000-$160,000
Rehab costs $8,000
Holding costs $8,000
Sales Commision $7500
My take $12,500

Offer Price $114,000

This is a pre-foreclosure where the bank is doing the negotiating. They say they have accepted an offer but still will accept mine as well. Eventhough I will probably not get this deal I am happy to finally get an offer out and go through the process.

Congradulations on your first offer.

What type of financing are you planning to use?

What repairs are budgeted into your $8,000 rehab budget?

I am working with a mortgage broker(actually the branch manager) that we have used for years on our personal residences. He does some investing as well and knows exactly what I need. We can get a 30 year 80% LTV at .25% above the normal rate.

As for repairs, we need some trim work(previous owner put in new laminate flooring but did not finish), new siding (vinyl), reconfigure the kitchen with some new cabinets(base and wall) and counter tops, and some carpet and of course a fresh coat of paint.

I was in the construction trades for 11 years and everything that needs to be done I can do with a little help on labor, my son will demand $12/hr ;D

Warped, You may want to tell your mortgage broker to put you into an intrest only loan with a 2 year term to bring your holding costs down to $3000 to $6000. depending on how long you hold it.

Congratulations Warped! If you don’t get it, there will be another waiting in the wings for you. WTG!

Blue, I like that idea and will look into it to see what I can do.

Tami, already have two more that I have run the numbers on and will be submitting offers Monday. :slight_smile: