I bought a Castle at My County Tax Sale

[Tanya Chaney]

Investment Info:

Other other investment in New Eagle.

Purchase price: $16,599
Cash invested: $75,000

I purchased an abandoned acre of property with a 4BR/2BA Cape Code and an unfinished castle on the rear of the parcel at the county judicial tax sale in June of 2017. We renovated the Cape Cod house and moved in February of 2018. Recently purchased the adjoining cottage that borders my property in July 2020. We are now renovating the castle and cottage to become investment properties, primarily to be used for events.

What made you interested in investing in this type of deal?

Romantic notion initially when I found the property in 2011. I later realized the investment opportunity and I went after the prize when it became available on the county tax sale.

How did you find this deal and how did you negotiate it?

I was told about the property long before I purchased it. I was originally listed for 1.2M. The price decreased over time but unfinanceable through traditional lending due to the condition of the property. The owner passed and all assets were auctioned by local agencies to include the property/castle.

How did you finance this deal?

All county tax sales are cash.

How did you add value to the deal?

Positive mindset and a great big dream!

What was the outcome?

I own the castle of my dreams and it is already earning income before renovations have even begun. I was also able to get out from under my traditional mortgage and use the equity in the new home (cape cod) to flip into renovations for the castle and purchase the neighboring property.

Lessons learned? Challenges?

There is always a challenge (or 20) when you buy any abandoned property, let alone a castle. We are working through some structural issues and keeping our eye on the prize.