Well, I finally did it. I made my first offer on an REO with NO MONEY DOWN! Unfortunately, I had to bypass my friend the realtor because she was holding me back with a bunch of excuses of why my offers wouldn't be accepted. I went direct to the listing agent. We did everything by email. Here is the run down...
3/2 SFR 1226 sq ft
ARV: $124k (conservative)
Repairs needed: $20k (on the high side)
My Offer: $60k
My plan: To wholesale the house to another investor for $10k. I will be surprised if the bank accepts my first offer, so I have a max offer of $70k. Even if an investor socks the $20k into the house, they'll still have $25k in equity plus their payments will be around $800 a month and the rent is $1300. So, they have good cashflow with the property. Ohhh, I'm excited!