I'm new to the DG community and am trying to hook my first deal. It just so happens that the 4-plex I'm living in has gone into foreclosure. It's currently in the redemption period.
Scenario: Inver Grove Heights,MN. 4-plex (excellent location) w/6 car garage. Current owner owes $380,000. FMV is $260k. Has a 1st and 2nd mortgage. Owes $300k on 1st and $80k on 2nd. He just filed bankruptcy and included the property in the banko. Each unit is currently rented out for $500 per month, utilities included. Before foreclosure hit, each unit was rented out for $900 per month, utilities included. The property is a nice piece but does have a couple downfalls. 1.) Needs a new roof ASAP(not leaking yet). About 4000 sq. ft. 2.) Carpets need to be replaced. 3.) The utilities are outdated and need to be replaced.
I have done my homework on this property and am ready to make a move. I'm just not sure what the best route would be. I personally have really good credit but would not like to use it if at all necessary. Another quick thing, I do KNOW the owners. Just wondering if anybody knows what the best way to go would be?