So I've read in Deans books that HUD will accept 86% of the price they are asking if there are no other offers on the table. For those of you that have closed on HUD deals (like Josh who just closed his first)Did you offer below that or was it within that range? The reason I ask is I have come across a HUD house just down the street from me. Its totally falling apart and by far the worst house in the neighborhood FAR FROM the condition of any other house. They have it listed at $210,000. Its being sold sold AS-IS w/o repairs or warranties, states to use Radon Gas & Mold Notice in document package and according to listings, it needs a new roof, has electrical system damage, etc. Just looking at the outside of the property, it has siding falling off the house, everything inside is original (build it 1979) and needs replaced-for example the carpet literally is worn through with huge holes in places, flooring, cabinets, appliances(all not working at all), lighting fictures (some even missing), old gold non transparent windows, and even doors (some also missing all together and others damaged), walls damaged, decks, yard needs major overhaul...everything needs replaced. I am looking to complete my first deal now. Wasnt planning on it being a rehab that I would complete myself or a project needing this much work. Dont know much myself about rehabbing (costs, etc) yet. For all I know it may be better off just to plow the house down and rebuild. But I just cant seem to get this property out of my head and keep thinking that even if its too much for me right now, that I could somehow contract it to someone and still make a profit (and learn about the process-especially the HUD process) or if nothing else give the lead to someone else who is ready for a project this size. HUD has it listed above other newer and larger homes in the area that are updated and in excellent condition inside and out. The TotalViewRealEstate.com estimates it at $203,072 but included in the data listed is homes that are within a couple blocks and FMV of up to and over $500,000. The land value listed by the county (and using 2009 tax info) is $71,200.00 and building is $119,260.00 with a total of $$190,460.00, which Im sure is not given the current state of the property and is not Up to date yet its still below asking price. How do i get a real estimate of the value given the current state on this HUD house? How low will they really accept? Does anyone have any experience and advice with HUD? Also any advice on how to proceed? I know this is a lot of detail, yet not everything needed to proceed with action but thought Id put it out there and see what everyone thinks because I cant see them selling the house to anyone at anywhere close to 86% of their asking price or even of the FMV because so much work or tearing down is needed. Thanks for your input!