Tax deed buy and hold/flip

[Osvaldo Valdes]

Hello BP

I want some advice, help, warning, or just feedback from an idea I have to jump into the RE world.

Several years ago I was hired on for a 3 month project with a company that raised 50M to invest in tax lien certificates in the state of FL. Ever since then I have been amazed at the sub world of tax lien and tax deed investing and have followed the tax deed auctions in my home county (Broward).

My plan:

Purchase a property at tax deed auction around 30K and move in. While living there I will make updates repairs and clean it up. I know with tax deeds it helps to obtain a quiet title which takes several months. This waiting period will be the time I live there and fix it up. I will look for a property that has a retail value around 70k+

Then after obtaining a quiet title I will either rent it out and try and apply for a mortgage on the property to recoup my funds or flip and sell it retail.

Numbers:

Purchase: 30,000

Repairs: 10,000

Total cost: 40,000

Rent anywhere from 1,000-1,500 or sell for 70k+

I know the numbers are loose numbers because there are many variables such as what property and what happens at the auction. Thank you to the bigger pockets podcast 29 with Dawn anastasi I am thinking of using lending club or prosper for the funding. This is why I plan to live there while turning it over since the payment will be less than my rent payment now.

I have data showing and listing the majority of the past monthly auctions in the last few years as well as the highest bid information. I am open to any feedback or if you are interested in learning more or seeing the data I am more than happy to share.

Ossie