HOUSE #2!!! Whoo-hoo!!!

One thing I've learned in this business is to expect the unexpected. I've learned not to get my hopes up too high as it can take numerous offers before something eventually pans out.

Well, I logged onto the HUD processor's web site for my state this morning and found out my offer won! The downside was the fact that I was the lone bidder, so I (maybe) could have offered something lower. However, given my agent's advice about HUD's theoretical base acceptence of 87% list, I was already at the lowest I could go. Anyway, here are the details:

List Price: $106,000
Offer Amount: $96,300
Net-to-HUD Amount: $92,300 (87% List)
FMV: $125,000 (77% Offer/FMV)
Repairs: (1*)
Year: 2003
Stories/Beds/Baths: 1/3/2
Size: 1,685sf
Exit Strategy: (2*)



1* According to the HUD inspection report, the property is in good condition overall. The only discrepency was mention of a hole in the master bedroom door. I will need to get my inspector in to do a more thorough analysis of anything major. From my own visual inspection, everything looked nice, and all I would need to do is clean the carpet and maybe paint the entire indoors.

2* I'm not really sure what it is I want to do right now. My wife and I both want to rent it out as a long-term investment, but several things are on the table we need to talk about. One of the biggest issues is with House #1. The tenants are expecting to move out sometime in the Oct-Dec timeframe. With HUD closings taking anywhere from 45-60 days, I could be looking at TWO empty houses at once, which would be a blow to our finances - especially with Christmas right around the corner. Second is the fact that property taxes are due in the Dec-Jan timeframe, which will be another financial blow. House #1's taxes last year were a little over $3k. I figure this house's taxes to be about the same, so I'll be looking at forking over $6k for taxes alone right around Christmas (and that's not including the $5k tax bill for our personal residence). I'm thinking of maybe doing a L/O, but still need to set aside some time with my wife to discuss more.