Sheriff Sale/Auction Experience

[Eric M.]

I have bought many a single family at foreclosure auctions. Always following my rule of at least peeking in the window of everything before I bid on it. (I failed to do that just one time and ended up with a gutted property and lost $70K).

Lately there has been a surge of condos at the auctions and the prices are crazy low. Most bidders won't touch em. I assume for the same reason I never have. You can rarely see inside before bidding.

Just curious what other's experiences have been buying condos in particular. I am wondering if a condo would be somewhat less likely to be gutted or have real major damage than a single family. Not sure exactly why I think that. I guess the condo owner seems like a less hands on type who wouldn't be doing major work on a property. I would think they might also be more likely to be moving into an apartment next and so not really have a need or a place for any appliances or fixtures they might like to steal.

Just curious other's experiences. THanks

[Chris Martin]

I disagree with the broad generalizations, like "condos are the first hit by a market downturn...and the last to recover". These statements make the reader believe that the property type alone determines the price activity. In http://www.biggerpockets.com/forums/12/topics/61770-condos-are-risky I provide an example where this generalization fails.
Regarding "You don't know the financial condition of the board and it can be difficult to get that information..." well, many times you can just google the development name to get everything you want. Board minutes, Resolutions and rules, Reports and budgets, Forms and applications, Newsletters... see http://www.parkglencondo.com/ for an example (and no, I don't own anything there). Or just ask, as Steve says. BTW, these processes are not much different from pre-sale investigations for other property types. Regarding Kevin's post that only lawyers have advanced information on sales... aren't we talking about public auctions? Postponements, etc., are common and not a lawyer's ploy. See your applicable state laws on the exact process, including public notices and processes for postponements.

If the HOA board is unreasonable or inefficient, buy a few properties then get on the board and fix it.