I plan on cross posting this on several pages because I don’t know anything and need as much professional help as possible (pun intended). I’m looking to buy a place at tax deed auction mostly for the land. It’s got a house that was built in the 40s on it and it’s pretty grown up. I plan on tearing it down and building a new home on it but am trying to figure out if it’s worth it or not. It’s a little over half an acre lot, it’s near a little creek and is in a designated annual 1% flood chance zone. It has a septic tank and is connected to power and public water. Haven’t went to see it in person yet, plan on it tomorrow. However, from photos it looks like it’s been abandoned for years and is in pretty rough shape. Not sure if it was ever remodeled. This would be the first place I’ve bought.
I’m trying to figure out what permits, technicalities and such I will have to figure out before buying it. So id have to go through several cycles, demo, landscaping, and reconstruction. I’d really like to build a somewhat small barndo duplex, roughly 2000 square feet concrete pad so I can live in one side and rent the other out and the zoning allows for multi family homes. I know a lot of it will be different based on the local laws, but I can at least get a general idea and understanding if it’s worth it. I do know I’ll have to get it inspected for asbestos and that will range a lot based on where I live. At the current moment, I plan on not spending more than 5-10k on it. If it goes higher than that it’s not worth the hassle in my opinion. I also don’t know how mortgage works for building instead of buying.
Secondly, can you get the property inspected before the auction? It’s a tax deed auction and not like a foreclosure auction.
I appreciate any information! I know it seems like I’m probably clueless, this is my first instance with something like this and will be the second auction I’ve attended in this county.
Looking to buy a property at auction.
byu/Impossible_Artist846 inrealestateinvesting
Posted by Impossible_Artist846
1 Comment
You’re asking all the right questions, man. Most folks just show up and bid blind, so you’re already ahead. You usually can’t get a full inspection before a tax deed sale, but drive by, look around, and talk to a neighbor or two they’ll tell you more than any listing ever will.
After you buy, check in with the county zoning and building office. Since it’s in a flood zone and older, they’ll walk you through what’s needed for demo, permits, and flood rules. You’ll probably need an asbestos check before teardown.
These auctions are cash only if it’s in-person live, so plan for that. Once you’ve cleared title, you can go for a construction loan.
I actually did something similar out in NM, bought an old rundown house on a busy commercial route for about $7k. It was grandfathered in for residential too, so after I pulled demo permits, tore it down, and cleared the title, I ended up selling the lot for just over $100k. Deals like that still pop up if you do the legwork and don’t rush the process.
Best of Luck