Flipflops

[ira s]

If I'm not mistaken, FHA has a 203k? loan combining purchase price and renovation costs. Still, I can't imagine they'd want to loan $$ for every POS out there.

[Ubersalad]

Construction loan guideline has changed so much, who knows anymore. Biggest hurdle of selling this crap is how to financing the damn thing...

[wrasse]

I just looked at this property. It's pretty horrid. Location is under high-voltage power lines. The house itself is gutted and wires are everywhere. Plenty of surprises I'm sure. It looks like a tear down and , start over. Basically, they are asking 300K for land which is way too high given location (next to high-voltage power lines, I-405 traffic noise) and costs needed to tear down the thing.

[Ubersalad]

This house actually is REO and supposely bought in action for 400k.

[mukoh]

[Ubersalad]

[mukoh]

[Ubersalad]

Well, having a GC license makes you a GC. I don't doubt construction loan is hard now, I was just sharing that it was very easy.

[Cougar]

No really - it's STI!
Taking bets,
#1 Teardown
#2 ReHab
#3 STI falls thru

I vote #3

[ira s]

I'll pick curtain #3. You just couldn't buy that POS subject to inspection, and we really don't know what it sold for.
Maybe it'll burn down, and they'll blame it on the Earth Liberation front.

[Cougar]

Looks like the STI fell through~ just a home for the birds.
Source: Bank-Listed Foreclosures
Status: Bank Owned
http://www.redfin.com/WA/Kirkland/12433 ... ome/511968

[rose-colored-coolaid]

My question, is on a house like that what, at what price does it become a reasonable purchase?

It needs a lot of work, but unless there is considerable damage due to exposure it doesn't look quite like a tear-down to me. The location isn't bad, the lot size is pretty good, and the house itself is fairly large.

So if you could find a shell of a house, and it needed a lot of work - like this one - what would be a fair value for the house? For instance, could this house be repaired for $150k? If so, $200k might actually be a good deal for it.

Thoughts?

[Markor]

Note the two land values: $104K and $258K. Whatever the true value is, it's a key criterion.