Out On A Limb

This is what I decided. I used my 401k as proof of funds and submitted an offer on the $50k house. If I get it, I will cash out that amount, fix up the place and rent it out. I figure $5k for carpet/vinyl, water heater, stove, paint, window coverings. That will not affect my offer on the other house because I will not have used any of the down payment for it and since I have already been a landlord for 2 years, the bank will include the rental income in the calculations to offset the taxes and insurance.

I went to see the house again this evening. Here is the lovely master bathroom.

The crazy kitchen (it is pink).

And the fancy front door.
When we got to the house today, my realtor looked at the sign in sheet and she recognized a contractor's name. He had been there twice. I think he is my competition. My realtor says that the contractors are flipping the cheap houses. I figure he can put $10k in this house with his own labor and sell it for $85k, no problem. He'll make $20k easy.

I'm not willing to offer very much over the asking price so I don't really think I will get the house. That's ok though. I hope the guy does fix it up and sell it to a nice family who loves it. It has a lot of potential.