So I've started my search for properties. I decided to give the Penny Saver a try and searched for properties using key words such as "motivated". I've opened up my options to Las Vegas, as well as Los Angeles where I live simply because a lot of properties in my area are in the neighborhood of $300,000 and up.
One property is listed as a foreclosure for $108,000. It's located in North Las Vegas. Its 4 bdrms, 2 ba. and was built in 1997.
From what I can ascertain from Yahoo R.E. Home Values the same size home sold for $220,000 in 2008.
The home sale history says it was last sold on 2/20/2009. The sold price was $145,297 and the assessed tax value is $83,814.
Assuming this home is in good condition and needs no work done to it, how could this place be in foreclosure if it last sold on 2/20????
Applying what I learned in the book, I would offer anywhere from 10-30% off that price. If that offer is accepted then I would lock in the deal for say 14 days (which takes it off the market and where it can't be sold). Then I would find a buyer that I can offer this house to -- say I bought it for $90,000, I could offer it to the buyer for $100,000 which could yield me approx. $8,000 which is my profit after paying closing costs.
This is a nice looking house from the pictures, though pictures don't tell the whole story until you inspect the property. The fact that I live in CA does pose a bit of a problem for me as far as traveling to Las Vegas to do see the property in person. How does one handle this kind of situation where you can't personally visit and inspect a property?
Anyone's input into this appreciated.
ETA: I talked to the agent who said that the 2/20 date is when the bank took back this property. He also said that the house needs some new paint inside and new carpet. It doesn't sound like this property is in need of a lot of work.
What would you do with this?