New guy saying hello

[Tom Sutherland]

Hello Bigger Pockets,

I am a 48yr old ex construction worker / general contractor. I live in the far southwest suburbs of Chicago and am reading up and studying into buying houses at sheriff sales and fixing them up and selling them.

I'm not so much interested in making a quick buck but would like to make some money. I became severely disabled back in 2004 and since then have general contracted 2 homes and a dozen bathroom remodels all geared toward wheel chair access. I am a wheelchair user myself.

Before my disability I worked in construction for 15yrs remodeled 1 home I lived in and built my 2nd home.

I'm currently trying to research hard money lenders and any tax implications there might be for me as I am on SSDI and collect a disability pension.

I'm thinking I might be able to buy a house at sheriff sale for around 70% ARV and that's assuming somewhere around 30-40k on rehab work inside doing the kitchen,bath redoing carpet and flooring and patching painting drywall throughout the house from the neglect/abuse of the foreclosed homeowner.

In my research I know to check for secondary liens and back taxes. The cost and timetables for evictions and the maintenance and utilities that will be required during the process.

Is there anything I am missing in the expenses I will incur ?

Anyways I thought I would introduce myself. I'm browsing through the forums for information and I'm going to go observe a sheriff sale next week.

I've researched 5 properties for the auction as a trial for what I would pay and how much they sell for just to see if my plan is feasible.

Good day to everyone,

Tom

[Ali Worthen]

The tough hurdle to over come will likely be trying to find hard or private lenders who will lend on auction acquisitions. 

As @Ned Carey pointed out, interest on your borrowed funds will need to be factored into your buying/holding costs. 

When purchasing at auction in Nevada the winning bidder is responsible for tax transfer fees. (Opposed to a typical transaction where seller traditionally pays). You'll need to factor in your tax transfer cost at your aquisition price and the ARV sale price.

Also if the property has an HOA. You'll be responsible for that twice as well. HOA transfer fees here average $150-$200. And then the resale package between $100-$150 (X2 because you're aquiring at auction and then again when you sell).

Last Title Insurance and Hazard insurance. 

Other than those and what you've listed, I think you've got it all about covered.

Reach out and/or PM me if you have any questions.

Wishing you a sucessful bid!