Posted by Scott (FL) on May 17, 2006 at 13:57:40:
This was the first auction I had attended that was not at the steps. I do not know what type of turnout to expect but was shocked to see the small amount of cars. Primary advertising was signage in front of house along with a 5 block radius on corners off of a main road. This area has been pretty active for investors and I would “guess” that about 20% are rentals. The opening bid was 1K and maybe the rest of the group was looking to steal it, hence, there were only a few active bidders. Most of the as-is homes in the area usually sell for mid to high 40’s, needing a lot more work, and ARV’s are in the mid to high 70’s. I placed my ARV at 70K because thats just the way I like to run my numbers. Then, an extra 5 or 8K is a bonus!! My estimate of repairs is inflated because I added replacing the CHA unit along with other minor stuff. There was no power, so no way to check it. Carpet, paint and kitchen cabinets is the last of large dollar amount items that need to be done. I assumed that it would go between 43-50K and I was planning on just being a spectator. When bidding started slowing down around high 20’s, I perked up. I got in around 32K at first(wife was about to kill me because I was too relaxed!), I believe the other 2 bidders was an owner occupant and investor.
The property is located on a corner with a rear fenced yard and additional shed. The only other things I would be worried about and was not able to verify if working properly is the water supply and sewer. I have done enough of both to not make it a problem for me, just a hurdle. Hope I supplied some answers for you.
I was looking forward to meeting you in Atlanta and appreciate what you contribute to this forum. Maybe I will see you next year!!