Stole properties at a tax foreclosure auctions. Options?

[Michael Ablan]

Hey everyone!  

I was hoping to get some opinions from you fine folk!

I went to a our city tax foreclosure auction and made out like a bandit. My partner and I picked up 3 houses for a total of $14,500. One is a duplex and the other are SFH. All three are complete gut and rehabs. Fortunately, the gut and rehab was already started on the duplex, so we're keeping that one and doing work to it.

Now we're trying to decide what to do with the SFH. They need approx $35-$40k worth of work, and the ARV would be $85-$100k. The spreads are pretty great, but our plates are really full as it is. We already have a 9 plex under contract, and I personally have a 4-plex under contract. So we are thinking about doing some sort of wholesale arrangement.

My thoughts:

1.) Sell them as is, as they sit for 3x what we paid.

2.) Rent a dumpster and pay our crew to completely clean the place and gut whatever needs to be gutted.  Then sell for 4x what we paid.

3.)  Gut and bare minimum rehab with the goal of selling to a small time investor for around 8x what we paid.

Has anyone worked a deal like this before?  What worked best for you and why?  Any suggestions?

Any feedback would be greatly appreciated.  Thank you!