Hello BP! New, but already one property under my belt

[Ryan Parsons]

Hi everyone, I'm a newbie to the real estate game but love the community here on BP. 

I do currently have one rental property in my portfolio and looking to add two more single family homes by the end of the year. I'm focusing on learning how to purchase properties at auction (I attended my first auction two weeks ago and learned a ton from the party representing the bank). 

I am looking for opportunities for networking or deals in the St. Cloud area of Minnesota, or the northwestern Minneapolis suburbs. 

One deal I'm looking into right now is actually a commercial property deal that is at auction. The structure on the property is in rough shape, and would need to be torn down, but the value of the land is what is enticing to me. It's located on a busy road, land value assessed at $53,000, and is going to auction next week. 

Being new, I'm not sure where to start in assessing whether or not it is a good deal, so my thoughts are to figure out how much a tear down would cost, put up a craigslist ad for office space and gauge interest, look at comps. Any other thoughts?

Again, I'm living and learning (here on the forums and in real estate) so any advice is appreciated. 

Have a great day!

[Travis Sperr]

@David Moore  gives very solid advice here, hitting all the nails on the head. 

One inspection you can not skip on commercial is a phase one environmental. Tearing down and rebuilding can be very challenging with city requirements and/or zoning on the property.

Good Luck!