NEWBIE buying lot at tax sale - Posted by Pete (PA)
Posted by Pete (PA) on June 16, 2000 at 11:46:43:
My local paper listed properties going up for tax sale in July. I ID’d a few of interest, drove them and narrowed down to one particular vacant lot. The delinquent taxes listed on it are around $1000 and it is owned by an estate. It is an 11,250 sq. ft. level lot with 125 feet of street frontage, located in a small borough with no zoning. It has two row houses adjacent on either side, a rear alley and small industrial property behind it, a municipal park across the street.
Regarding the purchase - I want to get a title search done to make sure it’s clear, and want to go to the town offices and make sure its a buildable lot. Anything else I need to do? Am I missing anything?
Regarding after the sale - I’m not sure what to do with it, either flip it or build apartments. Building doesn’t appear all that feasible…rough number crunching leads me to believe it will cost more to build than they would be worth, even with the cheap land. Then if that’s the case, who would buy the lot from me, unless they build a single-family home on it? Another thought was to drop some gravel on it and lease it to the rear industrial user as additional parking (20 spaces for $500 a month).
Any thoughts would be appreciated. I figure if I can pick it up for next to nothing, there’s got to be a profit somewhere.