Tax forfeited properties - what would YOU do?
Hello all.
I have a question and a real life scenario to present which I am currently going through and I'd like your advice and suggestions. I have done a lot of research and reading but I would really appreciate some input from people who have been through the process. I apologize in advance if the following explanation is long but I want to make sure I give enough information.
I have always wanted to invest in real estate to flip or wholesale properties. Currently I am working toward making real estate my full time career and I am about to go and test for my real estate agent license as I have completed my pre-requisit training and testing. I was introduced by a friend to tax forfeited properties.. After speaking to the local director for the office that handles the properties, I was told about the bid submission, assessment and approval process and was told that if I submitted an offer and the SOS sent an acceptance letter, the property would be titled in the county records and I would be the owner.
With that being said I began to look through the countless properties and learned how to identify the parcel #s, identifying the locations using GIS mapping, etc.. All from the ground up. I found 2 properties that appeared to have structures on them. When filling out the offer application online I checked the box that asked if they were vacant/timber/had structures, submitted my offer price and waited. About a month goes by and I get an email with an acceptance letter for an incredibly low amount, just above my offer price, for both properties.
Sounds awesome! I couldn't believe it.. So I went and drove past the properties since things were progressing and getting more serious. I discovered that both properties were currently lived in. One was in MUCH better shape than the other. The one that was in rough shape had multiple cars (on blocks) in the driveway, etc.. The other was very clean on the outside, the grass was done, roof looked good.. Both look to be in relatively low income areas but not neighborhoods that were completely run down..
My plan is to purchase the properties, clean them up minimally and then put them on the market. Eventually I'd like to get rentals, but not these. I'd like to roll the money from these into better investments.
So my concerns are as follows..
Liens.. Through my research I found that generally if a house or property has a lien on it, the lien gets cleared by the tax foreclosure (state) and the new owner wouldn't be responsible. Has anyone had bad experiences with liens that were not cleared? Am I misinformed on the topic?
Occupants.. I am not so much concerned about people living there. I actually like the fact that it says the properties are habitable. I will follow my states eviction laws if I have to. Have you purchased a house with inhabitants? How did you approach them? Did you offer to rent to them or did you evict them?
Any other advice would be greatly appreciated! I'm new but I'm not scared - I'm willing to do the research and work, I just want to try to do it as "right" as possible.
Thanks!