Question About Investing in HUD props

How hard/easy is it to deal with HUD properties? Are they easy to close on, purchase for the purpose of rehabbing and flipping? Any comments would be greatly appreciated.

It all depends on your location and market. When a HUD property is first listed it is usually listed as an Owner Occupant priority. This means they are looking for bids from people who will be living there as their primary residence. Usually this period is two weeks, if no Owner Occupant places an offer, than it will be open to all offers. This is when you, an investor, can bid. Take a look at previous sold huds so you can an idea where bidding goes and to who. They usually list the bid placed and whether is was an owner occupant or investor.

Also contact a realtor in your area about huds, they can give you more info and be able to show you some. Remember huds usually need a lot of work (at least in my area).

I agree with Dan732 - it does depend on the area and market. I suggest you do your homework before buying a HUD property and if you live in the Illinois or Indiana be prepared for some delays. Closings are not easily scheduled so getting possession of the actual property can take several months. However, I work with investors who have done well with them.