Courthouse steps for my first flip?

[Alessa LeSar]

I am considering my first flip. Any words of wisdom on buying a house off the courthouse steps? Theres a foreclosure in an area that appreciates really well. I would probably need a hard money loan, not sure what carrying costs would look like. I am going to go and try and look at it tomorrow, peek in the windows, look at the roof. I am a realtor in the area so I understand the ARV. I have a rough idea of what my max bid would be if my reno budget is around 150k. I have no idea what this house needs so I am trying to be generous with my rehab costs. ARV would probably put the sale around $450-500 depending on a few factors (can any of the basement be finished out to make more sq footage etc). Would love to hear from anyone with good pointers and stuff a newbie should be aware of! TIA!

[Jonathan Greene]

Yes, don't. You have the area experience and data to help you, but courthouse steps auctions are blind bidding (other than what you can find through the windows), all cash, 10 percent down at the time of close, and not always clear on all of the liens associated with the house (tax liens, HOA liens, utility liens, etc.). You are also bidding against experts at these auctions.

The best thing to do if you do plan on vetting foreclosures is to talk to the two neighbors and the two houses across the street. They will tell you all you need to know and they always want a nice person to buy the house and flip it.

I hope that helps. I just got back from Asheville!