Buying auction properties for flips

4 Replies

I know auction properties can be a good investment, as far as wholesaling goes, but is it good for flipping ?

I know you buy the properties as is and you can’t look on the inside which limits your ability to determine an accurate rehab cost so your numbers will be off. Anyone have any experience with a successful flip from home auctions?

@Kelvin Vinston I haven't done any, but my friend has done a few and they worked out pretty well for him. I would caution you about some auction sites though. Some of the sites put their own bidders on their to inflate the number, so you think you are bidding against another buyer, but actually, you are bidding against the site. Get to your number then walk. If the site likes your number, they will send you a message saying you are the highest bidder even though you think you might've lost. Best of Luck

I have bought many for flips. Oftentimes you can access them. Many have unlocked doors. Many have a realtor assigned to them and you can get in that way. if you're in a freezing area then I usually figure on broken pipes. If it has baseboard heat, figure on replacing them. Usually the boiler survives. Also figure on water damage. If you can't get in or see in the windows, do a title search to check on liens, read the bidder package and assume worse case scenario and bid what works.

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