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Originally Posted by sloth2946
I should hear by next friday on whether I get the home that I have been pursuing which when I am done fixing it I will have gotten it 60-70K below market. There will be winners in this and it is likes of me and other investors who pick up these short sales and foreclosures to turn them around at the right time.
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I, like you, will be a winner in all of this. I close on my house on May 19th. It is a foreclosed home that I am buying $125K below what the previous owner paid for it, two years ago. That's a 36% drop in price, about $25k below appraisal, and about $75k below comparable homes. It's also in great condition, which is something that can be risky with foreclosures. It needs about $3000 of work, mostly general maintenance and a fridge and washer. I'm putting in wood floors which will run about another $3000. When I am all done, and have spent maybe $7500-8000 in upgrades/repairs, I would gain about $50+K in appraised value. And, my loan is a low fixed 30 yr. The rate is yet to be determined as we think the banks will lower rates a little on the cusp of the Fed's rate cut today. Regardless, it will be less that 5.75%.