Tax sale strategy in this brave new world...

Tax sale strategy in this brave new world...

Member since 2018 · 11 posts · 1 vote

So right now, I'm sitting on 4 Indiana tax liens to come out of the redemption period this fall, and the initial plan was to hit the April commissioner's sale and pick up a few more that would come out of redemption approximately the same time. All D-class SFH in Gary, that appear to be in reasonable condition. My objective was to try to quickly re-sell most if not all of these, to tackle some personal debt, and then build up reserves for the next sale where I can buy to hold, rehab, and rent.

Until now.

My question is, once I get the deeds in my hand, who's going to be left standing to sell these things to?  It used to be that one could list one of these for $15k and sell it in a reasonable amount of time, but now I'm wondering if I should expect to be left holding them?  Is it wise to buy more?

Part of me is thinking that the average buyer for one of these properties is getting most of his rental income from section 8, and may not be hurting quite as bad as other landlords.  Plus the fact that taxes on these houses are next to nothing, so boarding them up for a little while until the world returns to normal isn't the worst thing in the world.

Tax sale buyers - are you still buying? D-class SFH landlords - are you in a world of hurt?

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  • Flipper/Rehabber · Highland, IN · Member since 2018 · 19 posts · 10 votes
    6y

    @John Roorda I don’t think it’s even worth talking about the exit on those fall sale liens yet. Best case scenario: you might have deeds for those in November/December but likely after that. That’s just the normal

    Progression of redemption ending, court heart occurring, deed being approved and recorded.

    Class D properties typically have the most tenant issues (outside of government funded) because every thing affects their lives a bit more than more stable A-C tenants. Job loss, babies, divorce, drugs etc.....

    There’s always buyers for those properties though and we have no idea where we will be in May let alone December so don’t lose the faith yet.

    As far as the spring sale: that’ll put that redemption period about the same ending time as the last year (fall) sale redemption ending. I’d say buy cheap as always in D areas.

  • Member since 2018 · 11 posts · 1 vote
    6y

    @Justin Smits - Thanks for talking me back from the brink, I owe you a virtual socially-distant beer.  If nothing else, this means that there may be a little less competition at the upcoming sale.

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