Updated about 4 years ago on . Most recent reply
Buying Properties off the property tax auction when using BRRRR
Would it be more effective to buy a property off of the property tax auction instead of purchasing a property off the general market when applying the BRRRR Method ?
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
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#5 Multi-Family and Apartment Investing Contributor
- Cincinnati, OH
@Micah Squires, a good buy is a good buy. As Jared noted, typically you are not able to walk through the properties prior to bidding, which adds risk to the deal. Risk is just that: sometimes you may get a property that is far less work than anticipated, and you have a home run. In other cases, the house could be in much worse condition than you expect.
As Jared notes, there are some ways to mitigate this risk. Talk to neighbors, realtors, trash collectors, etc to get any insights you can. Of course, inspect as much as you can from public areas. And lastly, I would have a general assumption that nothing works and most everything needs replaced. Go in with a conservative rehab budget, and bid the purchase accordingly, you will have a much better chance of having a successful investment.