Stategy for Tax Lien Bidding / Investing?

[Tricia O'Brien]

I want to buy tax liens with the hope of eventually owning some of these properties, but I'd like  advice on how to evaluate the risk of high repair costs between 5-6 promising properties.  I've researched liens for sale at an upcoming tax auction in Indiana and the laws for that county.  I plan to have someone in that county take photos of the outside of the  houses and neighborhoods I'm pursuing.  I don't want to over bid and / or end up with junk. My questions are:

1) Since I can't inspect the inside, how can I make a guess as to the repair costs of, for example, a 3/1 SFR, 900 sq ft, built in 1955 compared to a 3/2 SFR, 2500 sq ft built in 1890? If they both look well maintained/restored on the outside do you usually assume the inside is well maintained too?

2) After you inspect them and determine occupancy, do you prefer to bid more aggressively on the vacant ones or the occupied ones ?

I know some investors care only about the interest rate and redemption period on tax liens, but I like to bid on just those liens where I would want to own the property. Any replies would be appreciated!