I purchased a Tax Lien Certificate Mar. 2017 and now I'm the not so proud owner of a Corner lot with a slightly run down garage build on it. The garage has a single bay one car wide about 2 cars deep and a 1.5 wide workshop area separated by a wall. Also there's a small amount of storage in the attic.
Does anyone have suggestions how to make a profit from this acquisition. There was one bidder countering me, so someone had an idea about this place. Currently the property is for sale, but not much interest after two months. I've considered fixing up the garage and renting it out. I also like to idea of building an apartment on the land, but I'm not sure the zoning or costs involved. Ideas?
How desirable is the community? Is it somewhere that someone might want to live/build? If so, you might be better off prepping the lot for new construction. I know where I am it often makes more sense to take down dilapidated structures and present lots fresh than it does to leave it to the builder's imagination, who will at the least want a discount for dealing with the structure. Does it have water/sewer/electric already on the property? If it's a desirable area, that's a huge plus, as tap costs can be $10k all in or more, not to mention your costs for running the infrastructure on your side (water/sewer lines).
Unless I already new about new construction and Appt. buildings I would not go that route. i would not want to go the fix and rent unless I already know about demand for the kind of property it would be.
When I get an oddball property like that, meaning something I am not familiar with, I would simply take it to auction. You can set a reserve price to make sure it sells for enough to profit .
If the lot is on a busy corner or is in an area that will likely develop into it being a busy corner that is a little different situation. I would go to a commercial broker and have them help you evaluate and sell it. If it is a decent area it might even be worth acquiring adjacent properties to have a larger corner to develop.
@Emanuel do you mind me asking where you purchased the certificate?
Thanks for the info/ suggestions. The property is in a very good/ desirable area. No sewer or water. Electrical is from adjacent property. Wisconsin is a main road, but most all structures around are single family homes. The tax certificate was purchased at the Lake County Commissioner sale. Google "SRI Tax Sale" for a lot more details on that.
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