So I live in a small neighborhood filled with duplex townhouses. There's a tax sale auction tomorrow for a property in my neighborhood because the owners did not pay their taxes on it about 10 years ago. The minimum is about $4,300 dollars. There's just one catch.
This is what the 56'x135' lot looks like.
Turns out the HOA never paid taxes on its parking lot. What would you say my odds are for getting this and either being able to build a home on it, or selling it back to them at a profit?
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depending how it is zoned determines what you can build, also the current use of the parking lot as a parking lot for residents that are part of the HOA for the community can play a large role in the likelihood of the HOA purchasing the lot back from you.
If you have the money and you are willing to lose it you should DEFINITELY buy it if its cheap.
If its your property you can either try and talk to the one who build a parking lot on it to sell it with at least a profit of 100 %, if he/she is not willing to pay go to a lawyer and start an claim against the one using it.
Worst case scenario : its your property and the parking lot is gone and in a couple of years you either build a house or sell with a profit.
I would definitely buy it if its that cheap
If I were you, I'd start by looking up property values in the area, and determine how much of that value is derived from the land itself. Then, be willing to go up to 75% of that value for the property the parking lot is on, and hopefully buy the lot.
Once you buy it, you have to figure out how to keep HOA members from parking on it; then, either the HOA will want to buy it back, or you'll be able to sell it to a developer or other third party at some point, hopefully for a profit. Or, if you really want to, I guess you could develop it yourself (but I wouldn't suggest putting a SFH there; doesn't look like a great neighborhood for it, since everything around it is duplexes/townhomes).
Are you part of that HOA?
If yes, now might be a good time to read it. If no, try to get it see if it mentions parking. Residents might pay a portion of their rent for parking and why couldn't that piece be outsourced to you?
>whatever parking costs, double it lel
is right, what is the zoning?
Do you live in a state where you have to pay back-taxes once you purchase the property, or is it free and clear? (I'm guessing you will now be on the hook for paying all the back real-estate taxes).
What protections do the people that live there and use that as a parking lot have? You may think this is a stupid question, but it's really not, depending on the state you're in. They might have reasonable expectations and you might be violating them, and you might get sued (could stop you from building a house for several years, even if you end up winning).
HOA's don't have money.
Let me repeat that: HOA's don't have money. The reason they didn't pay the real estate taxes? Didn't have money. So why do you think you're going to be able to sell back to them, and have them be able to make good payments, or even get a loan. They won't.
You have a lot of research to do from now until tomorrow morning, and if you have any questions, don't fucking buy it. For example, you get that lot for $5,000, but then you owe $25,000 in old taxes or other liability issues you haven't looked into? You don't know enough. I would DEFINITELY not do it without knowing more.
And to top that off, do you know how much building a house costs? You're looking at a parking lot you're going to have to tear up, sewer, electric, etc. not just popping the house on it. It's not going to be cheap, and would probably be far more cost effective to purchase a house (especially considering that is a tiny, concrete locked little area, are there any other houses that close to the street?)? I just don't see this turning out well unless you can answer a whole bunch of questions and more.
Fucking do it. You have nothing to lose. Fucking sweet ass incompetence money
From everything I can find, it's zoned as residential housing. I shouldn't have a problem being able to build a house on it. If it turns out not to be, I'm pretty sure I could easily get it rezoned by the city.
I have the money and could afford to throw a bit of money at something like this. As long as the price isn't too high.
Home values in my neighborhood are about $150k for a house on a lot HALF that size.
I rent in the neighborhood, so I'm not actually a member of the HOA/POA
Free and clear. The taxes were only like $24 a year anyways. Plenty of houses about that close to the street. The lot isn't even right up to the street as the ROW extends past that sidewalk a good bit.
make absolutely sure it is that lot.
You don't want to own an easement or some stupid shit b/c of a typo.
What are the HOA rules? Can build, or do they have restrictions and limitations on how/when/where/what you build?
I don't think I'd have to worry about the HOA, would I? I will have no contract signed with them, and should only have restrictions placed upon me by the city/county.
Just triple checked the zoning. It's zoned as "General Residential." The same as all the other lots and properties in the neighborhood.
And yes, I would be bidding on the actual lot. Not an easement. The actual property and would not be required to pay anything but the bid.
Sounds like you're good to go. Makse some money.
a lot of times for these auctions you need to place the funds in advance or walk in with cashiers checks of some sort. see what is needed they can be real dicks about procedure and custom.
This. You typically need earnest money to bid ($1,000-10,000), and will either have to pay up front, or will need to establish some sort of contract for deed payment system; do your best to determine what the requirements are, and then work to meet them.
Good luck, bro!
Money isn't a problem. If I can get this for $5-8k I'd be happy. It's a bit of risk, but not a huge one, but I think there's a decent potential to make some money on this or even build a home in an area I like. I've been throwing around the idea of buying a house lately, but building one would be even better if I got the property for practically nothing.
Have a title search done by a reputable title company before you bid.
Make 99% sure there's no cloud over the title. Factor it in to your bid if there are any issues.
I'd highly recommend title insurance if possible, especially if it's your first time doing this. The slightest oversight can cost you big, big money. A $5,000 investment property can turn into a $30,000 nightmare in a hurry.
Title insurance is included in the bid. The city got a company back in December to be in charge of auctioning all of their adjudicated properties and they perform all of the work in notifying applicable parties that their interest in the property will be absolved and all that. I have a .pdf of the judge adjudicating the property for failure to pay taxes right now.
Ah, okay. Yeah as long as you've got some insurance in there you should be good to go. The law in my state is caveat emptor so I've got to cover all my bases at these auctions.
If it goes to action in my state, the owners/neighbors are all fucked it seems. It's fair game and there's nothing they can really do.
That's much different from where I'm at. Not bad at all.
Up here there's no guarantees build into the process whatsoever. Here's a link just to give you an idea:
sheriff.cuyahogacounty.us
I'd go for it if you can get it cheap
>buying any property associated with a HOE or backtaxes
No back taxes actually. The city waived them all.
Still, HOA's are bullshit.
Meh, they're a way of keeping your property's value and keeping the riffraff in check.
put a parking meter on said lot once you own it. You can monitor it by yourself
pretty easy cash
just live in a nice enough area not to have them
>old Scottsdale
>lake forest /highland park Illinois
>Auction is over $6k now
Meh, still might go for it, but not much higher. I'll wait till the end to possibly try and snipe it.
Oh well, Veeky Forums, it was always a long shot.
It went for $30k
Far too rich for my blood.
Damn you should've done this if you won: