Buying property from Tax Lein Auction

Tim

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My neighborhood is the “nice” one that is adjacent to the “bad” one. Soccer moms on my side, crack heads on the other.

My property happens to adjoin a property that is technically in the “bad” neighborhood, but is AT THE END OF A DEAD END ROAD and sees very little traffic. It’s ~1/3 acre, covered in brush and overgrowth., small house in unknown condition in it. I’m fairly certain it’s unoccupied.

The tax lien is less than $2K and as far as I’ve been able to determine there is no bank lien.

I’m thinking this is a good opportunity to accomplish a couple things:
- control who my neighbors are
- park an RV that is currently at a paid storage lot
- If the house is OK, maybe have as rental with close control
- clear it and put up a nice pole barn/shop

If I could end up writing a check for a few grand and own it, I think it’s a no brainer.

Has anyone bought from a Sheriffs auction before? What are the gotchas to consider?
 
Zero experience but how do you assure yourself clear title?
 
No advice for you but I would be thinking the same thing you are were I in your position.
 
No Idear. But I want one, so educate us as you find out more?
 
I think it is a great idea. I would pay $400-500 for s title search. Any real estate attorney should be able to handle it, I would think.


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Sorry, meant buy title insurance.


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No idea but “as is” can mean WTF when you get in there. I know of foreclosure buys that have been sabotaged beyond belief ... concrete poured down the sinks, toilets and shower/tub drains ... holes drilled in pipes ... passed and crapped in the ducts ... and other vindictive stuff. You might get lucky but be ready to wear a respirator and Tyvek suit to clean up before you even start renovating. Now that being said say a 10¢-20¢ on the $1.00 auction price would give you instant equity and sweat equity on top of that would yield you a nice little investment!
 
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You'll have to have the money ready to transfer at the time of sale. That's the only thing that stopped me from acquiring property that way.
 
If you can get the land for what you think is a bargain, any usable building on it is just a bonus.
 
I went and did a bit of trespassing. The “house” is unlivable, vacant, and would need to be razed. Definitely a ton of cleanup required.
 
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No idea but curious about possible pitfalls as I've been considering doing something similar nearby my house as a cheap investment.
 
I have an acquaintance that has bought a few tax lien properties in Henderson County. He has gotten lucky on some properties, but has ended up paying more than he thought he would for most of them. As you well know, folks think property in Henderson County is paved with gold based on the price they are willing to pay for it. Regardless, it would be worth a shot to try and get the property. If you could get 1/3 acre +/- here for anywhere near $2k, you'd be making out like a bandit. I'd buy it, bulldoze the house, and put a fence up to discourage the local idiots.
The location you described may work in your favor as lots of folks wouldn't want to develop property in or live in a seedy neighborhood, so you may be the only bidder anyway. Like mentioned above, just be ready to pay once you win.
 
Check for condemnation orders & outstanding utility bills, and always get a new survey done when buying property.
 
I went and did a bit of trespassing. The “house” is unlivable, vacant, and would need to be razed. Definitely a ton of cleanup required.
Local FD training exercise burn?

Be aware of any hazmat req's for demo. Oil tanks or nearby ground saturated by leaks, asbestos materials, basement full of chemicals, things like that might make DIY demo an expensive issue. Regs have changed a lot 'round here lately...

That said, I hope it works out! If you can get it for next to nothin', the other expenses may still not add up to not-a-bargain.
 
^ This, have your local fire department burn it for training.
Then get it cleared and haul off what is remaining.
 
My neighborhood is the “nice” one that is adjacent to the “bad” one. Soccer moms on my side, crack heads on the other.

My property happens to adjoin a property that is technically in the “bad” neighborhood, but is AT THE END OF A DEAD END ROAD and sees very little traffic. It’s ~1/3 acre, covered in brush and overgrowth., small house in unknown condition in it. I’m fairly certain it’s unoccupied.

The tax lien is less than $2K and as far as I’ve been able to determine there is no bank lien.

I’m thinking this is a good opportunity to accomplish a couple things:
- control who my neighbors are
- park an RV that is currently at a paid storage lot
- If the house is OK, maybe have as rental with close control
- clear it and put up a nice pole barn/shop

If I could end up writing a check for a few grand and own it, I think it’s a no brainer.

Has anyone bought from a Sheriffs auction before? What are the gotchas to consider?
Certain it's different here from there....like you said.....a no brainer...buy it.
 
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