I am getting ready to pick up a couple of properties at tax auction and I have a couple of questions.
1.) I know that you need to do due diligence when buying a property. We have already started doing drive-byes of the properties we are interested in. How do you factor in the possibility of damage to a property in the time between when you last look at the property and when you bid for it at auction?
2.) How do you insure the property? If there is someone living in the property and you have to go through the eviction process is there any way to mitigate the risk of them doing something to damage the property?
3.) What questions am I forgetting to ask? What should I be doing that I may not be thinking of?
4.) Has anyone here ever bought from a tax sale before? What was your experience? More specifically, has anyone bought from a tax sale in Michigan?
@Joshua Woolls Did you end up going through with the purchase of any of those properties? If so, I'd like to know what you learned about the process. How did it go?
I did pick one up in Livonia MI. Most of the properties seemed to go for too high of a price(maybe it was the fact that the tax auction was everywhere in the media last year). We ended up with a home in Livonia for 30k.... It was in bad shape. A hoarer house and everything was still in it. I put about 20k into it(hired much of it out) and we are getting ready to list it for 80-85k. Honestly we were going to rent it, but in that area of Livonia(NE corner) I just did not get good prospective tenants. I will walk away with about 15-25k in my pocket.
I will look again this year. If you have any questions about the process, let me know.
@Andrej Petrovski just went through this....
yap . Lesson learned : get a 40 yd dumpster when buying a hoarder house . I'm on 15yd dumpster #2 and still have more crap to clear out ...
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