Investor · Clifton, TX · Member since 2016 · 69 posts · 14 votes
First of all, I want to thank Biggerpockets and all its members. I've been studying the past 6 months and I finally bought three properties today at a tax sale auction. They were all great deals, paying between 20% -50% of retail value.
Two of the places have people living in them. One is a renter and I think the other is the owner. The third house is vacant. I was told I probably shouldn't contact the occupants until I get the sheriffs deed in the mail. I should get that in 2-3 weeks.
My first question is, should I go ahead and get insurance on the properties now? After I receive the sheriffs deed, How should I contact the occupants and what should I say? Is there anything that I'm missing?
My plan is to use these as rentals. Thanks for reading and I look forward to the feedback.
First, congrats on taking the first steps. May I ask what counties you bought in? We usually initiate contact with the resident and/or owner ASAP. Certain rights are dependant on the deed but you did actually purchase the property at the auction and are now the owner. Insurance should be initiated as soon as you can get it in place.
I suggest you determine the condition of the property and intent of the previous owner before you start collecting rent. Remember, once you intend to rent you are responsible for ensuring the property is compliant with the rent codes. There may be issues in the properties that will require you to spend significant money or risk fines.
First, congrats on taking the first steps. May I ask what counties you bought in? We usually initiate contact with the resident and/or owner ASAP. Certain rights are dependant on the deed but you did actually purchase the property at the auction and are now the owner. Insurance should be initiated as soon as you can get it in place.
I suggest you determine the condition of the property and intent of the previous owner before you start collecting rent. Remember, once you intend to rent you are responsible for ensuring the property is compliant with the rent codes. There may be issues in the properties that will require you to spend significant money or risk fines.
Investor · Buffalo, NY · Member since 2016 · 668 posts · 209 votes
10y
Get insurance now, these are your properties and you'll be getting a tax bill to prove it. The seller should have notified the occupants about you and how to contact you. They are expecting your call. Find out if you inherited any leases as you are bound by them until they are up for renewal. Just knock on the door and talk to them. Introduce yourself and hear what they have to say. Do they want to stay or leave? Be polite and act as if you are renting to them for the first time (you are). Goal is to get well-screened tenants in each property under lease and paying market rent. There are many posts on BP about how to be a landlord, read up and good luck.
Houston, TX · Member since 2015 · 15 posts · 3 votes
10y
I think you are supposed to also buy the right of reclaim from the previous owner. I doubt he will use it but if I find him and buy it after you renovated and evicted I might claim it. I also know nothing so I appreciate any corrections or additions to my knowledge of tas sale.
Texas Tax Sales Services · Merit, TX · Member since 2014 · 256 posts · 166 votes
10y
Steven,
When you contact the residents, the first words out of your mouth should be to let them know you bought the house but you do not want them to leave. This will allow them to breathe easier and perhaps even invite you in. There are other nuances that can make the experience easier and we also have a flyer that we leave in case they are not home (which is a good thing if they are working when you call). It is compelling but polite and they always call.
We are in Texas too and will be happy to help. We have properties in your area as well.
Investor · Clifton, TX · Member since 2016 · 69 posts · 14 votes
10y
@Arnie Abramson can I get a look at your flyer. That may be good to have even if they're home since it probably has all your contact info. Do I need to wait for the Sheriffs deed to arrive or could I initiate the contact now? Also, one of the properties I bought is vacant and the selling lawyers said the family isn't interested. Do I just "break in" and change the locks now so I can have access to the inside?
Texas Tax Sales Services · Merit, TX · Member since 2014 · 256 posts · 166 votes
10y
Yes. Contact me to look at the flyer. You have immediate possession of the property. You have a receipt for your payment to prove that you bought it and that should be sufficient to show to the residents if necessary. Yes, if the house is vacant you can change the locks and get inside.
we are looking for someone to be our 'boots on the ground" in your area. Perhaps we can work something out.