Won a house Auction! First deal. What's next!?

Question

After analyzing house after house, we finally found an auction house worth bidding on. Even had a little bidding war! We got a 3/2 house with a giant shop on .4 acres for $61k, its ARV is looking to be around $130k minimum. The town is VERY small (~2,000 population), very rural, but has gig internet and is less than an hour from Yellowstone/Cody, Thermopolis, and Ten Sleep, Wyoming. I'm guessing houses stay on the market there for quite a while, and obtaining this just before a Wyoming winter isn't all that ideal - however with the COVID19 situation, we're feeling lots of people are suddenly interested in living in small isolated towns - and one with GREAT internet and where chickens are allowed?! So appealing! Of course, we've been interested in investing in rural towns for years now. They often lack rentals, but as many have stated on the podcast show, you can get stable renters for life.

As auctions go, it's site unseen. As soon as the paperwork is complete, we'll be making a 3 hour drive to see the house to do our initial walk-through and decide how to prioritize the work...hopefully next week! And luckily, it appears that whoever had it last was trying to fix up the place. The pictures were low quality, but it does appear that the flooring might be new, and so is the water heater. Hopefully the roof is good condition, but really that's about the only thing that looked questionable (and also the pile of personal belongings left in the house). Does anyone know what to do when it comes with an abandoned vehicle?? There's a creepy van that we'd love to convert to a camper while we're at it ;)

We're so excited that we are finally starting our first real deal and we FINALLY get to make a blog post for people to follow along.  Does anyone have any suggestions as to what do with a successful auction buy? It was all cash, so I wonder if getting it refinanced or a HELOC will be too hard.

Thanks for any help!

Tashina Taylor · Answer

Hey everyone! We were finally able to get in today!

Looks like our hunch was right - almost completely finished, but a little rough around the edges. Just needs a few more things and it will be awesome!!! Here are the pictures! Can't believe all the hard parts are completed already!! New A/C ducts and all, new water heater, new plumbing, new kitchen and cabinets, new bathrooms, fresh paint, new floors, new light fixtures, new roof. Crazy!

https://drive.google.com/drive...

Tashina Taylor · Answer

I've just come across some old listing pictures.  I am CERTAIN that the house was almost completely remodeled.

If you look at this link, and compare it to the inspection report pictures, this place was almost done being fixed up! https://www.realtor.com/realestateandhomes-detail/1399-N-8th-St_Greybull_WY_82426_M88097-42881

Tashina Taylor · Answer

@Jerry Limber Sure thing! Here's a link to the auction site. The pictures from last month are in the inspection report. https://www.auction.com/details/1399-n-8th-st-greybull-wy-82426-2944403-o_1311

Jerry Limber · Answer

@Tashina Taylor - if you don’t mind, I would love to see pictures of the auction vs actual house once you have them.  Good luck, hope it turns out ok.

Nathan Gesner · Answer

Congratulations, Tashina! I'll respond to your PM shortly.

Tashina Taylor · Answer

@Jerry Limber

We are still waiting to close.  Hopefully by the end of next week.

Jerry Limber · Answer

@Tashina Taylor how did everything turn out?

Tashina Taylor · Answer

@Bill S.

Yes, it was on Auction.com! It had an inspection report available from just last month so I at least know it was still standing then. No reports of house fires in the paper since, so I think we're okay in that regard.

I think we may have gotten extra lucky as the previous owner seemed to have been fixing the place up and then couldn't anymore. New A/C ducts, new water heater, and new hardwood or vinyl flooring was being put in. At least one bathroom had been remodeled. The metal shops roof might have collapsed over winter, or there is just a ton of junk inside. That will be a fun surprise for us lol

I am also trying to sell the house I live in, so we may move into that one for a while just to get out of my current one. It's no Cody  but at least it's not 5 hours away from us anymore! Love that town!

Bill S. · Answer

@Tashina Taylor you are far braver than I. I would have at least hired someone local to do a drive by before the auction. It could have burned down. That said, congrats are in order if for nothing else but taking action. Just curious, was this on auction.com?

What to do with a successful auction buy? Rent it out. You should be able to refi in a year or sooner. If your numbers and assumptions are correct. You can get your cash back, generate some income and repeat.

Others have found success in doing owner financing. Wyoming generally has some favorable foreclosure laws and I have seen folks also doing a contract for deed.

Keep us posted and please update with real life pics vs seller's not so good pictures.

Won a house Auction! First deal. What's next!?

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