We're looking hard at buying a HUD home that needs significant work. It's a foreclosure . We're aware that they are sold pretty much "as is".

Anyone have any experience or advice with regard to this? Are there gotcha's that we are not seeing other than of course overpaying . We plan to lowball and see where it goes.

Haven't done it in a while but are you sure it's opened up to investors?

I think it is open to anyone. It's not an auction, it's listed on the open market.

I hear you. We aren't really focused on HUD, it just so happens we found a fixer upper at a lower end price in a unique environment that we think has potential to turn a net profit. Wouldn't have asked about HUD at all if this wasn't a HUD home.

It's been years since I looked at HUDs. Biggest negative back then is they would not turn on utilities. So all the electrical and plumbing you had to assume the worst in on your repair costs. Huge cost overlay that many of your competitors won't do and bid higher. Good luck.

Thanks. Electricity is on but water is not. There is evidence of some water damage which made me think maybe the 2021 freeze may have burst some pipes in the attic.

SteveBott said:

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It's been years since I looked at HUDs. Biggest negative back then is they would not turn on utilities. So all the electrical and plumbing you had to assume the worst in on your repair costs. Huge cost overlay that many of your competitors won't do and bid higher. Good luck.

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I bought a HUD home about 5 years ago and it came with a limited report that allowed us to know ahead of time there were some plumbing issues (I believe they pressure tested the house and found a leak). I think the reports notify interested parties if the house is habitable for $5k or less or something like that. That house was still the best deal I ever bought. Bank loaned at ARV and I picked up a check at closing for the rehab. Literally zero money out of pocket. Still own it as a great cash flowing rental.