Auctions are very popular in my area. I'm not talking about foreclosures or tax sales at the courthouse steps. I'm talking about the kind of auction where all the furniture and stuff is dragged out in the yard and sold, and then at one point the real estate is auctioned.
We've bought 5 houses this way, and gotten some very good deals. Usually there is an open house several days before the auction, and arrangements can be made if you want any kind of inspection.
The apartments are old and run down, but not as bad as we expected. They rent for $250, $250, & $260, which is at least $50 each under market in the current condition. They could be made to work.
The house, however, was a nightmare. We've dealt with old, worn out, stinky, dirty, nasty houses, but this one has a whole different set of problems. The layout is inconvenient at best, very steep stairs make a 90 degree turn with too small treads and too tall risers, spindles on guard rail overlooking stairs 12" apart, exposed wiring, galvanized pipes, doors upstairs less than 6 feet tall, unusual heating system, etc., etc.
A year or so ago it was on the market for over a year at $85,000 and didn't sell. I wouldn't take the house if you gave it to me. Many of the problems are unfixable or prohibitively expensive.
So, out of curiosity, we checked to see what it sold for. $91,000! Unbelievable.
I just looked up where Douglas County is. The reasons to buy a cheap multifamily are very clear for a lot of people, how to run it, not so much.
Yeah, the guy who just sold it rented to anyone with cash in hand. No security deposit, no rental agreement.
Douglas County is where I live, my rentals are in Texas County. Not that it matters to you in Pittsburgh . . .
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