I have been investing in the Rochester & Buffalo area for the last few years and looking into Cleveland. I was wondering if anyone has experience with sheriff auctions that they can share.
1. Are there good deals at these auctions or am I better off looking elsewhere? If elsewhere then where besides the MLS? I like to purchase properties wholesale ( I am generally a cash buyer) that need small renovations and then rent them out. On occasion I am willing to flip but I prefer to hold for cash flow.
From what I have seen on the MLS it seems that prices are a bit higher than I think I should be paying considering the cash flow potential.
2. If there are good deals there (at the auctions) then what are my potential risks? Which liens must I be aware of and where can I research them? I know that I can pay a title company but I assume that pulling a title on a dozen properties prior to each auction will not make financial sense.
If anyone has experience I would love to learn more.
Property Manager · Cleveland, OH · Member since 2020 · 268 posts · 315 votes
5y
Ever since the auctions went online the prices for sheriffs sale properties have gone through the roof, possibly higher than MLS prices with significantly increased risk. There used to be deals but they seem to have dried up now with a much wider audience bidding. There are lots of wholesale options, I just always tell them to only send me what they directly have the contracts on. I don’t like getting properties that have been marked up three times through a chain of wholesalers, I get the same property from three people at three different prices.
I have been able to pick up some decent deals on the MLS but with very aggressive offers put in the same day the property hits the market. There are a few agents in the area that focus on rental properties that might be able to help you with this and possibly find some off market deals. Let me know if you want their contact info.