Here’s the situation
I put in an offer on a house three weeks ago – this house fits every one of my criteria (low crime, low number rentals in the area, very easy access to Atlanta, etc.). The bank turned me down flat – no counter. They told my agent, it’s only been on the market five weeks and they will wait to see what other offers they get. I didn’t low ball them too badly – it was a very respectable bid considering the work needed to bring the property to par. Asking price was $94.5k I bid $82.5k (cash). The ARV is $135k.
Yesterday the bank lowered their asking price to $89,775. I’d like to submit another bid: Tell me what you’d bid – the estimated repairs are $17-20K, there are serious plumbing issues between the first and second floor (no visible mold), a lot of the ceiling has come down between the upper and lower bathrooms, in addition to holes in the kitchen ceiling from water leaks (you can see the pipes the holes are so big), water stains in the master bedroom, etc. – there are water issues LOL. The rest of the house (after that big issue LOL is paint, carpet and go – even the kitchen cabinets are beautiful – the house is only 10 years old).
Same bid, higher or lower? I really love the property, my agent says to go with an offer of $80k – I’m not so sure and want to bounce it off of you all. It’s a very spacious 3/2 on an acre. The neighborhood is beautiful with the exception of this house and the one next door. The next door house is owner-occupied and they are raising Rottweilers. The dogs didn’t bark too much but they are HIGHLY visible and scary, especially to a non-dog lover.
I would rehab the house, put a mortgage on it to pull all my money out and rent it. I can get $1,110/month for it very easily (this would be a positive cash flow). And, another option, I have a family who keeps calling me for a lease option.
I value your input so much. Thoughts? And, thank you in advance.