I am looking at a property that is forclosed and up for auction here are the numbers.
Owed 51,260.00
Tax appraisal 96,500.00
3 br 2.5 bath
roughly half acre lot built in 1988
1800 sq ft
west side of town nice area
If I am reading this right then this is a property that could go for a little as 50,000.00
and could need very little clean up to turn for a very nice profit. even if i had to put 20,000.00 into it to update it . The area seems to be selling for 100-110
The minimum bid on this property will be 51, 260 plus forclosure costs. If you decide to buy this property at the auction, be prepared to pay cash (no mortgage). I would expect the property to be in need of serious repair or rehab. You need to go look at the property and find out what problems it has. You may even find that you have to evict the previous owners.
Good luck,
Wilson
Good Deal;
If you have the tax numbers,look at the last four years! Did the property appreciate,or depreciate? Like the man said (LOOK AT this property)! If you know how to estamate the rehab,(GOOD) if not find someone who will give a close estamate. Then run the numbers and see where you stand!
You need to be at (MInimum) 65% of the resale value! Before rehab!
(JOE)
Bad_Repair,
How did you find out about this property? The auction I mean. Have ya read the terms of sale for buying at the auction?
I have had my eye on a property for 3 years (mostly when I did not know much about creative financing so I never chased it) and it has been vacant all of those years! Now it is finally being farmed out to a auction company.
The terms of this auction company is actually quite good as they allow you to finance the purchase. However, you must place 10% cash earnest money within 24 hours of the winning bid, $5,000 minimum deposit. Then you have 30 days to close or lose your earnest moeny.
This is good as MOST auctions of foreclosed property want 100% that day, immediately.
Oh yeah did I mention I gained access to the house during those 3 years and had a foundation guy give me a free estimate as well as me looking through the whole house estimating the repairs? DO LOOK at the property.
Most foreclosures will have been treated badly since the previous owners had other worries than watering the lawn/foundation or fixing those little things when they broke or cracked. Also alot of properties stay vacant for months which can create pest problems etc.