I'm interested in a property that is up for auction in several weeks. I plan on turning the home into a rental using the BRRR strategy. Since I'm a newbie I'm not sure what i should be looking at or what questions to ask so that i can properly assess whether this is a good investment or not. Any advice/guidance would be helpful.
Hello Kristopher. Have you walked the property yet? Peaked in the windows? Talked to the neighbors? I would walk the property with a contractor as well. Even if you have to pay one a few hundred dollars to consult with you on the property it could save you a ton of money. I just did a video on my Youtube about buying auction houses that could help you as well. Try to avoid buying blind, it usually doesn't turn out too well.
@Kristopher Lamy do you have cash? auctions are for cash. What type of auction. HOA,tax,mortgage(what position 1st or 2nd). Already real estate owned. Most properties you cannot see the inside and if if it is owner occupied you will have to evict after you buy the property. Don't know about Baltimore but some areas there is a right of redemption where the owners have time to make good on the foreclosure. What do the numbers tell you?
One thing about Auctions, people get emotional and spend way more than they should, don't be one of them.
Other than that, make sure ARV supports what you are trying to do, talk to an agent about it, may be pay a little to get comps.
If you can go in the house with your contractor that is great, since you are newbie, I assume you dont have one so check big ticket items like roof ( any indication of leaks), electric panel and electric in general ( if it needs to be updated or not) go basement to see if there is water damage, rest you will not be able to tell when you are newbie anyway.
Don't buy a house when you can see the sun from inside walls :D))