Posted by PBoone on June 19, 1999 at 16:57:36:
tonya,
Providing the figures of 75K resell is true this property is a perfect candidate for “Flipping” or if rehab is your inclination do a quick analysis of rehab expense keep as close to or below 65% of 75K which would include Rehab costs, points, holding costs, and purhase. Then resell.
“If the deal is good enough, the money will find it”
Pat
27,000 handyman special new houses all around appraised at 75,000 - Posted by Tonya Brown
Posted by Tonya Brown on June 19, 1999 at 13:10:07:
Today I just saw a two bedroom 1 bath house for 27,000 on handy man special in cleveland ohio. Other houses in neghborhood have been renovated and appraise at 75,000.
The structure is sound and the roof is in good condition. The guy just wants to get rid of it because he already has quite a bit of property.
What I would like to do is buy it with no money down offer 27,000 cash at close. What i would then do is obtin a motgage fdor 37,500 and give him 27,000 at close use the left over to fix up the property and get an outside an appraiser appraises the out side then go and get the house refinanced at 60,000 take 37,500 out and pay off the first mortgage then use the rest to fix the inside. Suggestion and advice is welcome.
Re: 27,000 handyman special new houses all around appraised at 75,000 - Posted by Irwin
Posted by Irwin on June 20, 1999 at 14:07:41:
Beware of investors offering bargain basement prices because “they already have quite a bit of property”. You left out two critical pieces of info. How much will rehab cost, and are properties selling for $75k or just being appraised for that amount. Appraisals and selling prices are two different things.
Your financing approach sounds like a construction or rehab loan. HUD has a 203k program that does this, but it isn’t for investors. If you can option it for $27k and get 60 days to close, with the right to show it, you might find an ultimate buyer to go for a 203k loan. This is a little tricky, and you’d have to work with a lender that is very fluent in this type of lending.