Tax Deed properties and auction Questions
- Hello, my name is Alex. I'm currently a college student trying to learn the in's and out's of real estate investing in Florida. After doing some research I came across a form of real estate investing that i found interesting - Tax deeds/ Tax Liens. From what I have read this can be lucrative because the cities/counties are more concerned with collecting the taxes owed on the properties, rather than the actual market value of the properties. I understand that due diligence is the key to making any investment so you run the numbers properly and calculate the risk vs the reward. My problem is i don't know what i should be looking for when assessing properties that are going to auction other than the obvious stuff like market value, comps on other properties, how long other properties that are around on the market, Rehab costs to structures existing on the properties, and the cost of taxes if i were to have to hold on to a property. What are other things i should be looking for? What if there is a mortgage on the property? What kind of margins should i be looking for to make an investment worth my time (obviously more than 10% - as i could make that investing in a stock portfolio)? Are there any strategies that experienced investors would like to share? What kind of investments should i make if i have minimal capital (currently trying to save 20,000 to get started)? Any and all advice would be much help.
- A little background info - I'll be going to get my RE licenses within the next couple months or so, my step father is a contractor so I have someone who can help me evaluate costs of any potential rehabs a structure may hold, and my goal is take my 20,000 and try to grow it to about 50,000-75,000 so i can invest in a more long term investment where i hold and have a small but steady cash flow, and eventually i would like to own multiple properties like this.
- Knowledge is power, and I'm trying to get as much I possibly can before i start trying to make moves. Thanks guys