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Missed Property #2 – HUD

April 21, 2012

I missed another property close to one of my current rentals. This one was in a Class C neighborhood with rents ranging from 650-850 depending on bedrooms. I actually did not even get a chance to bid on it – This one was a HUD and picked up in the owner occupant period. I despise HUD’s just for this reason – it’s very frustrating. They had this one listed at $35k and it was snapped up right away.

I would have actually bid over the list price on this one. I am very familiar with the area and know what properties sell/rent for. This one had a build out on the back of the house, but they left the garage in tact. The build out added a bedroom and a bath and made it a 3-2. This is somewhat rare in this neighborhood of 1950’s homes – most are 2-1 or 3-1’s with many built out garages.

This property was not perfect and needed maybe $5k-$6k to be rent ready. It was mostly cosmetic stuff. Hardwood floors were really scarred up, missing baseboards, needed paint. The add-on bathroom looked like it needed some work and they also added central heat and air and put the inside unit in one of the bedroom closets. This was quite awkward and would need to be moved to the hall closet. The kitchen was in decent shape.  

Although I did not even bid on it, I thought I would go ahead and post about it since I have pics and details. It’s unfortunate this was a HUD and not some bank owned property – I would like to have had a shot at it. Not sure why they had it listed at $35k – perhaps there was more wrong with it than I saw with my initial glance.

List: $35k

ARV: $60-$65k

Est rehab: $5k

Rent: $850

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2 Comments
  1. Melissa permalink

    Hello Chuck I just had the same thing happen to me I was really frustrated but I just had to say it’s part of the game. I hope that HUD change their rules soon but I know there not.

  2. Usually if the condition of the property is rough enough, then owner occupants stay clear of them. Oh well…onto the next one.

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