Water Damaged REO!!! Should I Bid?
I just recently viewed a REO which had water damage. All the wooden floors on the lower level of this 1500 sq ft house are buckled and probably need to be replaced. The ceilings and walls are damaged. Some of the walls are buckled (alot of drywall will be required). The bank just recently put a new roof on the house so the Tudor leaks no more. Due to water, mold also seems to be growing in the basement. The house is 4 bedrooms with 2 full baths. The bank is asking $49,000. It has a new 2 car garage. Depending on how well the house is repaired it can go for 80-130,000 easily. It’s in a great neighborhood near two universities and some of the cities best K-12 schools. I am thinking about putting in an offer tomorrow. I've heard that someone put in a cash offer close to the bid price. I’ve missed out on two REO’s in this area already this week. This is going to be my first home/investment property. I have worked on a few REO homes before and have some buddies to help me with this task. I'm also in no rush to move in. Do these repairs look rather extensive or not too bad? Anyone know of a site where I can maybe estimate my repair cost? Does anyone know if my mortgage lender will consider this house livable? My mortgage broker pretty much says he doesn’t know and their appraiser must check it out first. I have to put a appraisal contingency clause in with my bid. I have some photos at. Any advice would be great.
http://homepages.wmich.edu/~s8moore2/
h t t p :// h o m e p a g e s . w m i c h . e d u / ~s 8 m o o r e 2 /
Thanks,
DetDre313
I would definately have a mold inspection done. Other than that are you going to be doing the work yourself or sub it our? Are you going to be replacing the hardwood foors with like floor? or are you going to replace subflooring and just carpet it? I also guess it really depends on what you can get it for. You could probably get a contractor to go in and give you an estimate on cost to repair Good Luck
Joe
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Other than mold removal, I am going to try and do all the work I possibly can by myself. I probably will go subfloors carpet the bedrooms and put down wood laminate in the main living areas. Thanks for your advice.
-DetDre313
Get someone else in the boat with you. This is not a novice first timers project. Get a good, licensed contractor to walk through with you and point out anything you are missing and give a bid on actual repair costs. Then use his figures to make your offer (even if your doing your own work).
I personally don't think there is enough $$ in this if RMV is only 80K.
I have worked on these and had repairs in the 30K plus range and if your not a pro this could take 6 months to complete.
Good Luck!
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