Has anyone ever purchased a HUD property for less than their asking price?
I’m looking at a 1993 double wide - 1700 Sq Fft - that according to their own property report needs around $5k of repairs (I’m sure that is about half of what it needs to be saleable)- new roof, repair septic, secure underpinning etc. The property was bought for $72,900 in 2002 by the last owner (before HUD), appraised for tax at $39k in 2004. HUD are asking $48,600 (after reduction from $54,000).
Property has just over half acre lot, cul-de-sac, walking distance from a lake with boating, hunting and fishing in SC.
My thoughts were to go in with a bid of $40k spend $10k on rehab then offer for $75k hopefully for a quick sale - obviously if appraisor agrees with my est of $75k for ARV.
No experience with mobile/manufactured homes (or anything for that matter as I’m new to REI) just mulling things around in my head and wondered what you experienced folks think?
Dave N
I have one HUD…it was listed for $54K and I bought it for $51,500 all cash about 16 months ago. I did fixups and put a renter in at $650 (now $675) and it would sell now for about $65-67K.
Your numbers are not out of the realm of possibility…it is about 82% of asking, so they may go for it. But it may be below their established threshold.
Keith
getting them to take you $40k is very do-able; especially if it been on the listing for awhile with no bids (check the bid stats).
being about to flip it for $75k; that seems to be optimistic, but I’m not a double wide expert. validate that number with some comps or hard stats
Sure. My first property was a HUD f/c. Listed for $112k, bought for $101k, and worth $130k the day I put in my offer. Worth ~$140k today.
Thanks to everyone who replied, I’m looking into the comps right now but finding it hard to tell what is and what isn’t a manufactured home - using Greenvillecounty.org website as they have a search facility which shows all similar (definable as to square footage, rooms etc) properties sold within a set time limit, but you can’t specify manufactured or not so it’s taking a while to sort through.
Next job will be to find financing with no downpayment - any ideas?
if you are purchase as non-owner occupied, there are very few 100% financing options out it here and being a double-wide makes it nearly impossible. Your best bet might be a small, local bank (not a loan broker!). Even then, I seriously doubt they would do it with no money down. If you plan to live there, it a different story completely.
Plus you need to think about where you will get $$$ for repairs; considering partnering with a friend who has a few bucks to invest. Sure, you have to share the profit, but with 100% fianancing, you are going to pay thru the nose (or other bodily orfice) if you can find it.
My two cents.
Mike
Mike,
I’d prefer through the nose to any other bodily orrifice!
Yes I realise the 100% thing is gonna be a problem, repairs I can fund through exisiting low and zero interest credit card(s) (amex I love you!).
If it doesn’t work out at least it’s been a good opportunity to learn.
If you’re within 10% and you’re the highester bidder, HUD’s agent should award you the property.
It is my understanding that HUD’s agents don’t award the properties…this decision is made centrally by HUD.
Correct me if i’m wrong, though…
Keith