Would you buy this House? - Posted by Greg

Posted by Natalie-VA on May 22, 2006 at 08:43:27:

Greg,

Their asking prices are not what the value is. You should research sold comps in the area to figure out what the real value is. You also need to know how much the repairs will cost and how much your financing will cost. If you don’t have the cash to buy it outright, you’ll need to work on lining up some financing or a partner.

I know it gets exciting when they reduce the price by thousands of dollars, but it may have been overpriced by thousands to start with.

–Natalie

Would you buy this House? - Posted by Greg

Posted by Greg on May 20, 2006 at 15:11:04:

It’s owned by HUD.

It is a very large house, about 3,000 sft.

However, it is loaded with lead paint. Window, walls, etc.

Also needs some updating.

HUD has dropped their price by 45K.

HUD’s says, Whoever buys the house cannot resell for 1 year, (could be less)

I’m assuming a cash deal would void this rule.

Would you buy a house like this?

If so, How would you do it?

Would you buy to rehab, or wholesale, or rent?

Re: Would you buy this House? - Posted by jason

Posted by jason on May 22, 2006 at 13:34:35:

Make SURE there is no health department "orders’ ont he property to rid it of lead paint. That’s what happened ona property I recently bought. And they dont let YOU rectify the problem, you must use a lead abatement contractor. Guess what I just became?

What’s the value? - Posted by Natalie-VA

Posted by Natalie-VA on May 21, 2006 at 18:23:50:

I wouldn’t worry about the lead based paint or resale time. If you’re an investor just make the offer as an investor.

What are the numbers and what is your exit strategy?

–Natalie

Re: Would you buy this House? - Posted by John Corey

Posted by John Corey on May 21, 2006 at 11:31:54:

What is your concern about lead paint? Much of the US housing stock has lead paint. People can safely live in homes with lead paint. Are there any city or state rules that you are concerned about? Much of my life has been spent living in homes with lead paint or owing rentals with lead paint.

As Ski pointed out there is another post about HUD and resale restrictions. It is not a blanket 1 year ban.

John Corey

Re: Would you buy this House? - Posted by ski

Posted by ski on May 20, 2006 at 18:49:36:

see post above.

Re: What’s the value? - Posted by Greg

Posted by Greg on May 21, 2006 at 18:40:17:

The house had an asking price of 169K.

They have dropped it down to 125K.

It’s been vacant for a couple years.

I beleive a cash offer could get for less than 100K

I would wholesale it but do not have the funds to buy.