Tax Sale opportunity - any thoughts?
Hello.
I have been researching a local tax sale. My lawyer has basically stated that this is a wonderful low risk venture at this point. Here are some of the specifics of the property and what I am seeking:
- Seeking a $50K loan, secured by the tax sale property
- Offering 1st lien position on property
- AVR $150K+
- Purchase $15K or less, with $35K in repairs
- Willing to use a free/clear property as additional collaterial ($75K+ value currently) if needed
- Looking for high single digit interest rate, on 30-year amortization schedule with 2-year ARM and no pre-payment penalties
- Tax sale, so must use private money for 1st year. After that, I would refinance it into my personal holdings.
Is this a reasonable request? I would most likely live in this property for the first year then turn it into a rental property.
Thanks for the feedback! Welcome to any and all suggestions to make this deal happen.