The most common examples are an REO aka foreclosure where the lender has ended up with the property and is selling it.

Hi everyone,I’ve been spending more time looking at tax deed and foreclosure auctions, and one thing that always worries me is making sure I’m not missing something during due diligence.Before bidding on a property, I usually try to check as much as possible, such as:unpaid property taxesliens (IRS, municipal, HOA, utility, etc.)code violationsopen permitsjudgments or court records tied to the ownerpotential mortgages that might survive the salecity fines or special assessmentsanything else that could become my responsibility after purchaseThe challenge is that this process can be pretty time-consuming, especially when every county website is different and information is spread across multiple places.I’ve seen some investors outsource this to lien search companies or hire people to research properties before auctions, while others seem to do everything themselves.So I’m curious how other investors here handle it.A few questions for those of you who regularly buy at auctions:What is your standard due diligence checklist before bidding?

Here is how I understand it works:- You search for homes inside the platform which has full MLS access- It utilizes AI to analyze a home and spot red flags, provide comps, and market analysis- They partner with local realtors who are paid a flat fee to unlock and show you the home- Ai will provide price recommendations and draft an offer (always reviewed by a real human broker)- A human specialist helps keep things like inspection, lender requests, and title tasks on track- The seller pays Homa the full (typically 2.5-3%) buyer’s agent commission.

This "build-to-sell" model utilizes Tenant-in-Common (TIC) ownership to bypass the $1.35 million median price point, delivering homes at 20% to 25% below local fee simple prices.

Thanks Hey @Ramya Manchu,What you’re describing is actually very common for self-employed investors—strong equity positions but lower taxable income due to legitimate business deductions, which can make qualifying for conventional HELOCs more difficult.One option many investors in your position explore is a DSCR (Debt Service Coverage Ratio) loan or an investment property cash-out refinance.

Second thing to share is that my goal is to combine this investment property into a house-hack, wherein I'd live in 1 unit, rent out the rest, and utilize conventional financing to take advantage of lower down payment and reduce my housing expenses by having tenants offset the mortgage.

in the Milwaukee area (out of the city) utilizing the VA loan.

A few quick, practical things that actually matter on multi‑units:For your budget and area (400K, northwest side + Melrose Park), focus on 2–3 units with:Strong bones (roof, foundation, mechanicals)Room for rent growth (below‑market rents, dated cosmetics)Clear separation between units (separate entrances, utilities, meters)An owner‑occupy option so you can live in‑unit and keep borrowing costs lowWhat to watch out for:Parking issues or “we’ll just put a car on the street” arrangementsShared HVAC, shared utilities, or “their own meter but… it’s all run to the same spot” nonsenseOverpriced buildings that only work if you aggressively rent up and rehab cheap—force that math to hold conservativelyFor specific “properties worth looking at,” I’d branch your search into:Chicago northwest side: 2–3 units with long‑time tenants under‑rentedMelrose Park / Cicero / Forest Park: 2–4 units within blocks of transit where you can raise rents a bit but still cash flow at 400KIf you want, I can send you a super‑short checklist for when you walk each 2–3 unit (what to inspect, what to ask the agent, what to run through in your head before you decide to offer).

Specifically, I’m hoping to learn more about: What to look for in a turnkey duplex (red flags, must-haves, common issues)How to properly run the numbersRent assumptionsVacancy, maintenance, CapExCash flow vs. breakeven for owner-occupantsTips and tricks for being a first-time landlordBasically anything you wish you knew before buying your first duplex Maybe pittsburgh-specific advice (neighborhoods, rent expectations, taxes, utilities, etc.)

A 60-day close that becomes 90 days because the buyer's appraisal came in low -- that's where profit goes to die.How long is DOM in your market right now for well-finished flips, and are you seeing appraisal gaps becoming a common problem?