Now I need your advice

[Uwe S.]

Hello everybody,

Yesterday I found a property on craigslist Cleveland, a 8 unit (6 apt. and 2 store front) for only $95k. Building is rented out (month to month) and I can buy this house with my own money, but there is a snag.

Property has back taxes $12k and a pending tax lien, the owner will retire, he has more properties in Cleveland, but this is the only with back taxes.
The back taxes are not my problem, it´s the tax lien. I have no experience with. So please advice me, what should I do?

-Uwe

[Michael Rossi]

Don't confuse cheap with good. Cleveland is a depressed area with MANY bad neighborhoods. Obviously, the current owner couldn't make money with this property, otherwise it wouldn't have a tax lien. You need to determine why the owner was losing money on this property. Is it in a gang infested slum? Is it filled with non-paying crackers? Is there any demand for the store fronts? How much deferred maintenance is there? Are there any city fees or fines pending? Unpaid utility bills? Who pays the utilities - the landlord or the tenant? Etc, etc, etc!

You also forgot to mention the most important thing - the rents? What are the actual and potential rents?

Good Luck,

Mike