REO properties in Western NY

Foreclosures, Short Sales, Tax Foreclosures
1

I have been recently finding homes that are REO and need quite a bit of work but i fear that the house wont sell for as much as the surrounding ones. Do you usually make an offer on a house and then get it inspected? I am having a hard time estimating the costs of repairs and stuff like that. i am also having a difficult time finding hard money lending sources that are legit online. when you made your first deal was it this intimidating? should i be able to look at a house and know that it will absolutely make me money?

ill give an example of a house that i looked at today. it was a single family home selling for 29,900 in a middle-low income neighborhood where houses usually sell from between 50-65k, it is REo and the only work that it really needs is some new carpeting, kitchen floor and possibly counter top, and a new coat of paint in all of the rooms.i think i might be able to make 30k with forced appreciation but i am afraid that if it doesnt sell then i would be forced to rent it out and only get 100 a month in cash flow.

is this too risky? will i be able to find better deals? the market seems to look like this all over buffalo, but i would like to do a little rehabbing.

any suggestions?

2

Go for it.

3

If that is really all the house needs, that would be a good starting point for your first flip.

For REOs, is this listed through a realtor, or directly with a bank. If it’s with a realtor, you can go into the property to see it. Get a contractor to come in with you and they can help give estimates for you on the work. You want to make sure that you don’t get caught having a big electrical or plumbing problem - which could blow your budget (and profit margin).

If you can’t get into the property, budget extra for some problems and base your offer on that.