Upset sale vs Finding a rehab home

[Raylicia Y.]

My goal is to rent out at least 2 homes in the upcoming year. I have been saving money and doing a lot of research through Bigger Pockets for some time now. It wasn't until just recently where I learned about Sheriff Sales and Upset Sales in my area. The Upset sale runs annually every September and after talking to my mothers landlord, surprisingly the majority of them attend these auctions! The homes can be dirt cheap ranging from less $1k to an average of $8k (the maximum I have seen is around $30k). You have to do your own title searches, etc. and you are unable to get an inspection before purchasing the home. The homes are old and not in the best condition. The amount of homes on this list are extensive and they have many homes in areas that I am very familiar with. After researching the BRRRR method (something that I would love to do in the future) and wanting to eventually build a portfolio. Would these Auctions be the best path for a newbie? I'm aware that the title search must be done correctly or I am in for a lot of trouble. Other than the title search, the cost to renovate the home may be pretty expensive as well. It seems as though many landlords do this in my area, but I wanted to get advice from someone who has had experience in this. There aren't many forums discussing Upset or Sheriff Sales. What is your take on this?

[Ryan Cameron]

@Raylicia Y. I don't have any experience in Harrisburg, but in Philly, I have used the BRRRR method on sheriff sale properties. The most important thing to find out is if your title can be insured (Banks will want that before they would refi for you). In my case, I had to wait about a year before my title could be insured.

I hope this helps. Best of luck to you