Would you buy a piece of property if… - Posted by Ed
Posted by Ed on March 10, 1999 at 15:59:01:
“If” is the big word. I may have the potential of making a good buck on a distressed property. Here’s the details: Property listing at 160K. In bad shape at the moment, but will go for 200-250k after repairs. Repairs may cost up to 70K but with some sweat equity can probably do it for 40-50K. Owner has to dump it. He was doing the rehab and lost his job, and he’s out of cash to finish the work. It’s been on the market for 2 months now and he’s getting desperate. I know to get an inspection done on the house first, and I will also visit the courthouse to get more details on the house like what the guy owes on it and what houses are actually going for in the area. I plan on making and offer of 80K-100K and see if he bites. Here’s the “if’s”. If the inspection is favorable, if the guy bites on, let’s say 100K, and if I can get a 203K loan into the financing, I 'm thinking it may be a good deal. Am I wrong? Am I leaving out any thing? Any advice would be helpful. Thanks.