I was wandering through the listings of the real estate auction website, auction.com, last month and placed bids on two properties I didn't think I would win. Well, when the auction ended on the two listings, I ended up being the high bidder. I closed on both properties this week. Both properties happen to vacant lots that used to have single family homes on them and have since been demolished (one for being burnt down and the other for code violations).
The thing is, I'm not really sure what to do with the lots. Should I try to resell at a higher price? Should I build and then sell? Should I try to apply for a multi-unit permit? What would you do?
The addresses of the two properties are:
426 Doty St, Fond Du Lac, WI 54935
221 E Lexington Ct, Fort Wayne, IN 46806
Man you definitely put the cart before the horse on this one! I personally would try to get out of them as quickly as possible, regroup and come up with a plan before making my next move. Unless you have money to learn as you go you need to have a plan of attack or experience first.
I would figure out what path will generate the largest profit (or smallest loss) given an amount of effort you're comfortable with -- then do that.
Of course, this is something that you should have figured out BEFORE you placed your bid...what makes you think the deals are profitable if you haven't gone through the exercise of analyzing them?
I agree with @Chris K. and @J Scott you need a lot of information to make an informed decision. Learn what they are worth and what the best options are before you make your next deal.
I would evaluate capital gain income and consider making a donation to a nonprofit to use as an offset to capital gain income. There is good money to be made in loss offsets.
Maybe network with other investors or agents in the towns you bought the lots in and see if they will help you sell them off for a fee?
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