HUD Homes. Are they a good investment??

[HFUENTES1]

HUD Homes. Are they a good investment??

[kdhastedt]

They can be...sometimes, they are sold at retail which I don't believe makes them any real bargain.

I bought one early this year...2/1, about 1,000 sq. ft. for $51,500...I patched/painted (inside and out), put in 3 new doors, new carpet, some other odds and ends (about $3,500 all together) and it appraised for $66K, so about 20% above the cost of the house and materials.  It rents for $650.

Keith

[JaredfromIndiana]

I just bought one for 24K, 11K in repairs, and selling it for 60-65 K.  The thing about HUD home is they sell for around 70% of the asking price, so if that fits in your formula then it's a good deal!  Good luck!! :

[gmtmaster]

Bluestar...

How did you get the money for repairs? Did you manage to find a way to finance the repairs in with the loan or did you pay out of pocket?

[Propertygirl]

My first Hud home was a good deal for us. I paid 72k put 16k including holding costs and sold it for $116,000. Remember location and timing are very important.
Good Luck

[BlueStarHomesInc.com]

GMT... I borrowed money from an investor.  I got the offer approved at 24, then knew I needed 11 in rehab, so I borrowed 35 total.

[TruAxiom]

I just bought one for 24K, 11K in repairs, and selling it for 60-65 K.  The thing about HUD home is they sell for around 70% of the asking price, so if that fits in your formula then it's a good deal!  Good luck!! :

I noticed that on the bidding site, they have two different types of bidders.  Either Owner Occupant or All Bidders.

Does anyone know the conditions of being an 'O/O' and how long you must live in the home before selling it?  
I was also told that HUD has rehab loans available, has anyone used them? ???

[kdhastedt]

As far as I have ever seen, the HUD does not specify an exact length of time that you must live in it before selling except in the case of their special programs ("Officer Next Door" and "Teacher Next Door" programs require a three-year occupancy).  Having said that, I highly recommend full honesty when dealing with these programs.  Please do not go into them knowing full-well that you're going to live in them a month to get part the O/O requirements and "get-over" on the system!  It is wrong...these programs and the funding for them is one of hte things that the Government does reasonably well and efficiently.

HUD does offer some rehab loans under the FHA's 203(K) program...I highly recommend that you read up on it at the HUD website:

www.hud.gov

Keith

[TruAxiom]

Thanks Keith.  My goal is to be an honest investor.  There is already enough dirtiness in the business as it is.  

[kdhastedt]

 :

Keith

[fogdryer]

what web adress  is the HUD homes found on?

I spoke w/K Williams today.  They said the market is good for buying, renting for a year/possibly 2, then selling.  He said flipping is not as lucrative right now.  He said everyone is renting property right now instead of buying.

[fogdryer]

I just left the www.mcbreo.com site.  I also emiled the broker.  How can someone possibly WIN a  bid?  Is it worth the effort?  

[NoMoneyDown]

HFUENTES1 - Read my success story.  

fogdryer - You 'win' by submitting an offer that nets the most to HUD.

[fogdryer]

yes, they must get the most, but you want to spend the LEAST, right?  Do they offer any parameters?  I mean how do you know where to even start bidding??  

fogdryer

[NoMoneyDown]

yes, they must get the most, but you want to spend the LEAST, right?  Do they offer any parameters?  I mean how do you know where to even start bidding??

1. You do your due diligence and arrive at your own ARV.
2. Submit YOUR price according to YOUR MAO.
3. If it's the winner, rejoice.  Repeat steps 1-3.