I was driving through a neighborhood where homes are appraised between 105-150K. I found a home fsbo for 61k according to sign but when I called the wife later that evening she indicated they had knocked off another $4K. So was selling for $57K. Now she did say the property did not pass inspection so couldn’t qualify for a fha loan. My question then is this. If I’m looking into maybe flipping or assigning contract to a rehabber, should I be concerned with this information provided by seller. I have been looking at comps and if right, looks like this house has a arv of $118K. Any advise will be greatly appreciated.
I am not as seasoned as many; however if you have any friend contractors, I would schedule to see property with owner taking along contractor, do an estimate of what is needed exactly. Figure how much to cost to fix issues and if worth it, go for it. You mentioned you are looking to assign or flip? If asigning, that really would not be a worry of mine. This peice of information to the assignee does not have to be divulged. Unless you are looking to keep property yourself as investment for later equity.
Did she say what about the property caused it to fail…there are a hundred things that could cause it from missing toilets to a bad furnace to bad roofs to major structural damage…see if she’ll give you a copy of the inspection.
Keith
Keith,
When you are right your right..
You might even look into a sub-2 deal here…
Shame on you. Shame, shame, shame!
Reap what you sow.
Seller mentioned one of the back rooms had cracked walls so I assume has foundation problems. I’m going to go see it tomorrow afternoon. I am taking a contractor with me. So guys this sounds like a good deal for assigning?
She said it did not pass inspection for FHA financing. Most people now a days don’t use FHA financing so it may not be a problem if you are fixing and flipping. Like others have said - ask her what failed - then make your decision.
Good luck …