This was my first auction and I was really excited. The property I bid on and eventually was awarded was purchased sight unseen. Upon visiting the property, I was horrified to learn that I had purchased a piece of land with a dilapidated house on it. Any suggestion on how I can maximize this boo-boo?
Figure out what makes the most financial sense and do it. Most likely it's don't put any more money into it and dump it as fast as you can. The loss is the cost of your real estate education.
How much land is with the house? If it's some acreage, then you could lease it out to a farmer, especially in the Dothan area (peanut capital of the world). Otherwise, depending on how dilapidated the house is, repair and rent or sell, maybe with some owner financing. You could wholesale it with owner financing. My guess is that it will be a dump and run.
I'm also sure that you won't buy another auction property without checking it out first.
Hope that helps.
Ouch! You may need to clear the lot and build a new house on it to have a chance at making a profit. Possibly clear the lot and sell it as a vacant lot if it is in a decent area. Talk to the fire department about doing a practice burn to lessen your haul-off expenses. If it is a big lot, maybe it can be split into 2?
Thanks Greg. I will give the fire department a call.
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