Indiana tax sale strategy

[Brian Horwitz]

Well, It is tax sale season here in Indiana and I am interested in dipping my toes in the water of this jungle. I have looked at many houses on the list and was wondering what kind of strategy works best if you are interested in acquiring the property and not just getting the interest money. I just want to get properties for a good price, rehab, and then collect rental income for myself. I'm sure most the of the properties have been sent a letter from someone wanting to purchase already. Is a vacant property better odds than an occupied property? Run down property less likely to redeem? Are Information searches of the owner helpful? Are C class properties the most likely to redeem?

I have limited funds so will have to select 5-10 properties out of several thousand. How much over the face value do people typically pay?

Thanks

Brian

[Ned Carey]

@Brian Horwitz I do lots of tax sale buying but I don't know Indiana law specifically.  Generally vacant houses, houses with no mortgage, houses owned a long time are going to be the best candidates to acquire. The most likely to redeem are homeowner properties or valuable properties especially that have a mortgage. 

You will find however that it is somewhat random. I bought a lien on a property with the windows blocked up with cinder blocks. I thought for sure I would get it. I tried twice and it redeemed. Then one year I saw the door open and it was starting to be renovated. Just drove by a week ago. 10 years later it still sits there with the windows still filled in with cinder blocks.  On the other hand i have gotten a newly renovated property for an $800 lien. 

I don't know how competitive it is there. Here in Baltimore they bid the interest rate down to 4-6%. They bid up the prices to where if the owner does not redeem they will lose money on the sale.