As I mentioned last week, (I think) we have a new house under contract — The Drought House…
The reason I say “I think” is that we already had the HUD contract returned once because we didn’t “dot all our i’s and cross all our t’s”. If we didn’t get it right the second time, they’ll likely kick our contract out. At least that’s what they tell us.
Here are some current pictures of the property:
Here are some more details about this property:
- The purchase price for this one is $56,500. It was listed at $60,000 originally, we offered at $55,000 and ultimately HUD countered and then accepted our $56,500 bid.
- This will be a full cosmetic rehab, but the goal is to keep the budget as small as possible. We have some left-over materials for previous rehabs that weren’t used, and we have a credits with a couple suppliers that we’ll likely call in, so our goal is to keep the rehab to under $20,000.
- While I have a feeling we’ll probably be able to get this property under contract for between $105-110K, my guess is that it won’t appraise for more than about $97K. So, when it comes time to list the property, we’ll have to figure out a pricing strategy that will net us the most profit on the sale. For example, keeping closing costs for our buyer to a minimum, not providing extra concessions, etc.
In an upcoming post, I’ll detail our proposed rehab budget for this project…