Tax Sale Auction - Vacant Residential Land in - Posted by DSW
Posted by DSW on March 07, 2006 at 15:24:21:
Hi, I am seeking advices or opinions to see if an opportunity that I am interested is really worth investing.
I am participating in a tax sale auction that took place recently. There are couples of vacant residential parcels that I am interested in bidding. I?ve done my due diligent by checking the comps, title and asking a friend to take pictures of the parcels. According to my friend, these parcels are located in a rather depressed neighborhood. Literately, you have to guard yourself when driving thru the area. The starting bids for these parcels are pretty low, around $5-10K. The sales comps with SFR within 0.25 mile radius run from $145K to $230K. My plan was to get the parcels in a reasonable low amount and flip them with quick profits.
The issues I have are to determine (1). the limit I should pay for these parcels (trying to avoid any crazy bidding war); (2). the exit strategy I should consider if I do get these parcels; (3) the methods to flip these parcels since these locations are rather less desirable.
I will appreciate any insightful suggestions and advices. Thanks in advance.