Need advice on a project - Posted by Alan

Posted by RC on February 17, 2002 at 22:11:55:

You’ll never know 'til you try. I purchased an REO worth 375k for 214k - it only needed carpet and paint. Good luck

Need advice on a project - Posted by Alan

Posted by Alan on February 17, 2002 at 22:02:51:

Hello all
I would like to thank everyone who has been helping me with my situations. Your advice has been invaluable.
OK, heres the story:
I came across a house that is bank owned and their asking $210,000. I went to look at the house and it has been closed by the city.I spoke with a neighbor and he told me that there was a murder in the house and the surviving family member just let the house go. He said his wife helped the lady move last year and that there were mushrooms growing in the house. Now I know that cant be a good thing. But, the house is a 2bdrm,3bath house.I dont know why it’s only 2 bedrooms because it is a big house, 3 stories. Now I was thinking of getting the house and completely gutting it and making it into a 3 or possibly 4 bedroom house in which case the comps for that area are in the $450,000 range.
My question is, what’s my next move? I know I should contact the city and find out why they condemened it. But as far as the bank that owns it goes, what do I tell them. I have a contractor standing by to give me an estimate on the repair cost for when I gain access to the house. I figure even if the house needs $100,000 worth of work it would be worth it if i put in a $150,000 or $175,000 offer. What is the chance the bank will accept that?
I really would like to move on this one so anybody who can help I would really appreciate it.
Thank you for taking the time to read this