pitfalls for tax sale

[Bonnie Y.]

I'm close to making my first ever investment purchase, which turns out to be a tax sale. I thought the only downside is I won't be able to cash out on it during the redemption period.  Now more and more questions are popping up. Here are a couple.

1. Supposed I put in $50k on the renovation of a property which I bought for $30k, if the seller decides to pay off the tax and buy back the house, does he pay $30k or $80k plus interest/penalty?

2. How often does it happen that the seller actually come back with cash and buy back the property?

3. Are there any other pitfalls before I get clear title on the property?

Thanks, BP community!

[Account Closed]

@Bonnie Y.   You should be very careful fixing up a property before you get clear title.  People and I mean people like me, check to see if people are remodeling during the redemption period.  If they are we buy the right of redemption or work with the property owner with the right of redemption to get the property back.

The remodeling costs are NOT normally recoverable by the person that bought the property with the right of redemption included.