20k to Start. Property Tax Auction or just Cold Call?

[Jeff Cox]

Hi, 

I have been thinking about getting into REI for a few years now and i have roughly 20kish. I have been looking at alot of advice here on BP but i noticed that no one is actually suggesting anyone with less startup cash to go to property tax auctions. IS there a reason for this? i was thinking about trying to get a lower priced property there and try to fix and flip or fix and rent hold and use the equity to get a mortgage to fund a couple more properties the same way.

Now since i dont see alot of people suggesting this approach i was curious if this was just one of those things that not alot of people have great success with or some other reason. 

I just figured if i could get an auctioned house for 10k and put in another 10k-15k (will probably have 25k by the time i buy one) then i would see that as a huge win.

I see alot of you guys saying to cold call /drive for dollars and flip flip flip but i would think buy and hold to be a better turn around IMHO. I am not really against cold calling or mass mailing and im sure auctions are brutal but i wont take it personal if i dont win anything just testing the waters and the options.

Opinions?