Hi everyone, I’m a new real state investor. Just getting informed and prepared. I reside in NYC. How about obtaining a property in Philadelphia on a sheriff sale, hold it and rent it? Any advise ?
Sheriff sales are risky for new/inexperienced investors. You can’t go inside and you can’t peek in the windows if the property is inhabited. Without knowing what you’re getting into - meaning, the property may be more damaged than what you intended to originally spend to rehab - is risky. (Think water issues, fire damage, foundation problems - you just don’t know). Also, being from out of town, you don’t know which blocks are worth investing in and which ones aren’t. Lastly, listen to J Scott podcast #62 (I think), about managing a rehab from afar. Even for a seasoned investor, managing a project from a distance is hard. Might be worth seeking out a partner in the area you wish to invest the first few times you do this.
There are those that will contradict me and say I’m wrong, but for your first project or 3, I would stay clear of sheriff sales.
Thanks so much @Alan Blitz. I really appreciate your advice. I attended a sheriff sale today in PA for the first time. It was an experience I’m grateful for. I didn’t buy anything just wanted to see how it goes😃Just want to invest and start my journey. Not a lot of inexpensive properties in NYC. Just want to get my feet wet and struggling deciding where to start investing at.