Just Starting Out
Hello to all
This is my first post here and my first venture into this realm. I have all ways wanted to do this but something always got in the way (I let it get in the way). But now that I have a potential piece staring at me in the face I feel foolish if I did not attempt what I have all ways wanted to do.
This forum is awesome and from what I can tell full of information. Is there a FAQ that I can go to to read up and get up to speed at least on the buzz words, meanings and so forth so that I am not lost in the beginning? I didnt see one upon first glance.
I am in central PA, is there a forum/group or outlet that I may be interested in joining that I can gain more knowledge from? Possibly a mentor?
The deal that I am looking at presently is a tax deed auction on a "block house". My understanding is that I need to quiet the deed after the auction. How do I do that? I have heard it is a good thing to do a title search prior to. Can I do this myself or do I need to pay a title company to do this? I would like to rehab the place and am considered a serious DIY (I have built houses before). My biggest concern is where to get funds to do this. The house needs a complete rehab from top to bottom I estimate about 50K. It has 3 bedrooms 1/5 baths and is in a decent location. The house's current assessed valued by the county is 56k. I have heard, hearsay so I dont know, that a house needs a certified roof, stove and water heater to be eligible for a homeimprovement loan.
Thats it for now I will probably have more questions as time goes on. Thanks for your time and I am open to all suggestions.
Quiet the title? Apparently, there are some unresolved issues with this parcel.
This could be a terrific learning experience, but perhaps not one on which to get started.
I would meet with a local title company to find out what's involved in initiating a lawsuit to quiet title... how long the process would take, how much it would cost, etc.
[addsig]
50k in rehabs? I can BUILD a pretty nice house for that. And, after you get finished putting fifty thousand dollars in this house, it's only worth 56k? Why is it you consider this a deal? I understand, and admire you desiring to get started, but this ain't no deal. Look for something you can buy for 50k that'll sell for 130k. THAT would be a deal.
I"m with Jam200 on this one, if you are going to invest your time in putting $50k rehab into a deal, I would want it to be worth more than $56k when I am done....rehabs are great investments, especially if you know what you are doing (which it sounds like you do, buliding houses prior).....now assessed value is typically 20% or so off, but still even say it is worth $65k afterward, the effort first the reward is to small to me.....I have a rehab that I am looking at, going to buy it for $80k, needs $25k rehab max., and assessed value is on this one is 150k..........as far as learning the buzzwords, you now have to upgrade your membership of this site to utilize their definition page (under my tools in My TCI)........good luck and happy investing
[addsig]
Greetings,
You asked...
"Is there a FAQ that I can go to to read up and get up to speed at least on the buzz words, meanings and so forth so that I am not lost in the beginning?"
Try going to the button that says "My TCI" then click on "My Tools" there's a lot of information in there for terms, abbreviations, etc. that should be very useful for you.
HTH
Thanks for the quick replies
The property is county assessed for 56k for tax purposes, this is different than what it will sell for. This assessment is also for the current condition it is in, abandoned for the past 5 years. I feel that looking at similar properties that have sold in this area it should go for between 90 to 105.
The question about quieting the property was "should this be something that I should have done?" Looking through what other states have posted online about their tax deed auctions it is listed as something that needed done.
I was under the premise that a tax deed auction eliminates all debt except for gov liens, current year taxes and IRS liens. Still trying to get clarification. The two times that I have called down to the office I got a different reply. Just wondering if those that have bought tax deeds what did you have done after the sale?
Thanks
As has already been suggested have a title search done before the auction. If you can find the owners before the auction, have them deed the property to you. Then go and file your deed and pay the back taxes and penalties. This will take the property off the auction block. Your rehab cost seem high,I think you can do the rehab for $25,000.00 or less. Remember you are not going to live in the house.