# things to look for when buying a bank sale



## cuzzin_elias (Jul 7, 2009)

So I am looking at a house this weekend that is a bank repossession that is offered at a very attractive price. I realize that with repos there is often damage done and sold 'as is'. Ideally I would like to purchase, fix up and then rent for additional income

What are some things I should specifically look out for when looking at distressed properties? What would be a deal breaker vs something that's an easy fix? Any advice appreciated


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## Berubeland (Sep 6, 2009)

Look for structure. Level floors, straight walls, look from across the street to see if the house frame is straight or leaning. Look for Wall cracks

Smell for mould which can be an expensive/advanced problem.

If the police have been through the house they will remove vents and baseboards looking for stashes of drugs which could indicate a grow up or lab.

If there is a problem it should reward me handsomely to take care of it. So if there is $10,000 worth of damage I should get at least $20,000 to deal with it.


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## Four Pillars (Apr 5, 2009)

Alright now that the expert has posted, I can give my opinion. 

I would say don't buy the house. You clearly don't know much about renovations/fixing up a house otherwise you probably wouldn't be asking. We gutted out house when we bought it and got a pretty harsh crash course in how incredibly much it costs to rebuild most of a house. 

You say the price is attractive - compared to what? A good house? There are no deals in real estates - you get what you pay for.

If you really want to get into real estate investing then buy something in better condition - a small condo for example might be a better starting point for you.


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## FrugalTrader (Oct 13, 2008)

Cuzzin_elias, make sure that you can get into the property to inspect it. Sometimes (like in NL), they won't allow a walk through and sell the house as is which is ridiculous in my opinion. 

A lot of times, there is siginficant damage by the previous owner. One foreclosure that I walked through had severe water damage by "someone" leaving the bathtub faucet running.


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## Rickson9 (Apr 9, 2009)

cuzzin_elias said:


> So I am looking at a house this weekend that is a bank repossession that is offered at a very attractive price. I realize that with repos there is often damage done and sold 'as is'. Ideally I would like to purchase, fix up and then rent for additional income
> 
> What are some things I should specifically look out for when looking at distressed properties? What would be a deal breaker vs something that's an easy fix? Any advice appreciated


Take the gross rent for the year and multiply it by 5. If the price isn't cheaper than that, you can't afford to fix it.


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