Awhile back, I wrote about meeting a Real Estate agent who was willing to help me look for properties to rehab and sell. The area is a small town outside of St. Louis. Well, I went to meet her, and we looked at about 12 properties in the area.
They were BAD…The only one that seemed worth the time has a contract on it already >:(
The last one we looked at is a HUD home that has been listed for about 9 weeks on the HUD site. We couldn’t look inside of the house, because the agent isn’t registered with HUD as an agent. She is now going about doing that (they say it will take 4-6 weeks to get her a key to see the property). It looks good from the outside. It’s listed on the site at 35,000, and is valued as-is at 54,000. There is a house directly accross the street that sold 4 months ago for 96,000. It was originally listed in 10-2004 (construction not completed then)!! That’s a LONG time on the market!
The HUD home was built in 1920. I assume, from what little I could see that repairs would be around 20,000 to 25,000. These are my questions:
- How does everyone who has done rehabbing feel about dealing with HUD homes?
- Does this seem like it may be a high risk due to the time it could be listed when we are ready to sell?
Thanks.