Any of you ever bought a old foreclosed property and flipped

>>1209270
>Things to avoid?
The thing you are talking about is a thing to avoid. They can be a huge nightmare and ruin you. If you are asking about this kind of shit of 4chan of all places, you are so out of your depth you can't even fucking see the surface.

>>1209270
Jesus.

Just.... dont.


There is a laindry list of shit such as people u dont know like HVAC or construction compa ies having a charge against the property for failure to pay.

Assholes in my state have 2 FUCKING YEARS to pay back taxes AFTER a sale and reposes YOUR new home no matter what u spebt fixing it up. It's a popular scam i am told. Then the cocksuckers sel it for 10 times what they had in it and yar fucked.


Oh yeah, and be sure to hold onto it for 1 year and 1 day or else u get hit with the capital gains tax of %30 or so of the sale price. This is AFTER you bought the mutherfucker and paid sales tax already.

Just dont.

Flipping is a gamble for the rich and these faggot home and garden ahows are fake ass reality tv.

I am warning u.

BTFO

>>1209270
Theses are Tax Forfeitures, not foreclosures.

Foreclosures are bank owned because you didn't pay your mortgage.

Tax Forfeitures are properties that the local government took from the owner because they didn't pay property taxes.

You can get a hell of a deal on a tax forfeiture, but usually the owner didn't pay the taxes for a reason.

Things to note:
If they couldn't afford to pay property taxes for a few years, they probably couldn't afford to pay to keep the place in repair.

One common cause for these is the person dying and the kids or whoever inherited the place, not paying the taxes because they forgot.

You have to pay all the back taxes on the property when you buy it so you better make sure it's not going to be an extra 20k you didn't plan for.

You can't get a mortgage on them. Cash or short term loan only. So basically if you don't have cash to drop on them, you can't play.

You will often run into the previous owner squatting and you will have to go through the eviction process. Contrary to what people think, this isn't telling them to get the fuck out or as anon often suggests, just pointing a gun at them. It's a legal process that takes months.

As far as the flipping part. If you're not a skilled tradesmen or know some who will work for free, it's not happening. Sure you can /diy/ some shit, but if you're buying a dump and do it all by yourself, it will take years.

>>1209299
yes that's what I was meaning thank you like government repos, tax sales ect

>Things to avoid

it's still got that just cooked meth smell!

>>1209270
Real estate markets vary widely based on location. In NC, you'll rarely find a deal at the auctions. The starting bid may be low, but the bank is going to automatically bid whatever was left on the mortgage. Tax liens are always a nightmare. 95% are houses that were inherited or left abandoned after someone died. The county takes years to foreclosure on a tax lien, so they haven't paid for a while. Add in the fact that the house is at least 30 years old because it doesn't have a mortgage (banks require you to pay taxes into an escrow every month) and you're asking for trouble.

I've always waited for foreclosures to hit the MLS and I've had good luck thus far. Making cash offers that close quickly puts you ahead of 90% of the other offers. Take your absolute best estimate of the repair cost and double it, especially on your first house.

Honestly, if you don't have the cash to get into it, you're better off "flipping" houses you live in. You can easily buy homes that need some work, take out a traditional mortgage, live in it while you fix it up, and then sell it or rent it out. I got my start doing this.

>>1209270
I know a few people that do this.

One now just resells it back to the original owner for the cost of the money he spent on it. His karma is doing better than it was before he was doing that. Before he'd just flip them.

>>1209436
so he makes no money?

There is a small piece of garbage house that is foreclosed and going up for auction across from my house.
Its 4 steps below my house, the houses next door, and pretty much every other house in the neighborhood.

Is it stupid to buy property right across the street from you? Not sure what id do with it, itd probably be better suited to demolishing than trying to fix it.

>>1210202
>so he makes no money?

Sounds like he is doing a form of charity/community service of sorts.

>>1210287
Id say buy it if you can afford it....at least you will be able to pick your new neighbors

>>1210288
must be a rich guy

>>1210287
If there's no mortgage attached to it, you can pick up it up for cheap.
If the house you're in now is going to be your permanent home, then it'd be a good idea to fix up the neighboring house. You'd be surprised how quickly a neighborhood can start a downward spiral because of only a handful of trashy homes.

>>1210300
>must be a rich guy

It sounds like he breaks even every time.

>>1210374
I mean he must have been rich prior to that in order to do it for nothing

>>1210371
>If the house you're in now is going to be your permanent home, then it'd be a good idea to fix up the neighboring house.

This. When people stop taking care of their shit, the neighbors have less incentive to take care of their shit. Plus buying the cheapest/worst house in a nice neighborhood is always a good idea if you want to fix a house up.

I know people who have bought a shitty house next to theirs when it hit the market just to knock the thing down and have a bigger yard or to put up a large garage.

>>1209289

You can bypass sales tax with a Sales and Use Certification, you know, actually having a business for "flipping".

>>1209342

Members of my family have a property in NC. Druggie relative tore the fucking house down for scrap metal so it's pretty much worth jack shit. In a rural area and no redeeming qualities. We're just waiting for the seven years for them to claim the property and then we're going to buy it. I don't see it going for more than 1-2k in it's current condition.

I do the flipping while living. Own three places, one I bought outright (a small commercial building in a small town for $16k cash), a trailer out in the middle of nowhere that I use as a residence (8 acres of land, barns, cost me $35k), and a small residence I got for $9500 that isn't in good condition but the tenants have lived there for years and while they're trashy rednecks, they've been good for $400 each month. After three years I've already made profit on that property and we recently negotiated on them being allowed to "rent to buy" by agreeing to a small rent increase, so they're paying me $500 a month until May 1, 2018 (their annual lease date) and then I'll sign the house over to them. This is great for me because I haven't had to do fuck all to the house and there's no way I could rent it to anyone else. They got about 50 chickens and 10 wrecked cars in the yard. The small commercial store was duplexed prior to me buying it. Building one is rented out by an attorney for $500 a month, the other building has two small offices. Currently one was vacant (was being rented to a tax person during tax season for $300 a month) and the other person pays $300 a month for a small office that he uses to sell vintage toys and stuff out of, though most of his business is eBay related. This town is one of the last in the area to not get the growth boost, so it'll happen eventually.

>>1209299

This. Also a lot of the prior owners tend to trash up the place out of rage or spite so youll be having oddball issues every week trying to find the leak in your pipes or cracks in foundation.

My current house even was a bad flip job and that alone was a nightmare.