I came across a FSBO in a low income neighborhood which is also a neighborhood next to one I grew up in. The property is going at 25K they owner estimates that it would need 17K worth of rehab and then the after rehab value would be 60K. I called the owner up on the deal and met with what I think is her agent. He tells me that she is 5K behind on her taxes and she wants some one to catch her up on them plus give her 2K up front. Do you guys think this is a good deal?
I have to figure out where to get the 2K from. I can work out a deal with the county tax collector to pay the back taxes. I have a friend that works for Lowes that could get us discounts on materials and me and my husband plan on rehabing the house ourselves to minimize costs in repairs. I plan to either live in this house, give it to my grandmother (she's currently living in an apartment as a direct result of Ike), or rent it out and take section 8.
What do you guys think? Or do you think there's a better way to get this property without paying the 2K up front?