Thoughts on Auction Deals

[Murad Azimzada]

Hi everyone,

I'm about to purchase my first rental property, which I also plan to live in initially. Currently, I’m renting elsewhere, but the property I’m looking at is just a couple of miles from where I live in Baltimore.

The house is being auctioned, and touring it in person doesn’t seem possible. That’s making me a bit nervous—especially since, as a first-time buyer, I haven’t seen the house inside and out beyond the listing photos (even though a few of my real estate entrepreneur friends are helping me).

I’ve noticed recent trends showing a ~0.5% dip in home prices and expect there might be more to come.

What’s one thing you’d absolutely make sure to check when buying an auctioned property—especially if you can’t tour it?

Appreciate any advice from experienced investors here.

Thanks!

[Brendan Mullenholz]

Quote from @Murad Azimzada:

Hi everyone,

I'm about to purchase my first rental property, which I also plan to live in initially. Currently, I’m renting elsewhere, but the property I’m looking at is just a couple of miles from where I live in Baltimore.

The house is being auctioned, and touring it in person doesn’t seem possible. That’s making me a bit nervous—especially since, as a first-time buyer, I haven’t seen the house inside and out beyond the listing photos (even though a few of my real estate entrepreneur friends are helping me).

I’ve noticed recent trends showing a ~0.5% dip in home prices and expect there might be more to come.

What’s one thing you’d absolutely make sure to check when buying an auctioned property—especially if you can’t tour it?

Appreciate any advice from experienced investors here.

Thanks!

Liens and back taxes are big items you want to spend some time on figuring out before bidding.  Like Mohammed said, doing a drive by and peaking in the windows (if you can), will help determine the amount of work.  If the roof has holes in it, just assume its a full gut with no salvage especially in the Baltimore area where we get all 4 seasons.  Happy to chat more about it.