I just received bids back from the state of Alabama for three parcels that are part of a salvage storage yard/business It is comprised of 6 total parcels, 2 of which contains the main building and the remaining 4 are the storage yard. I have purchased one of the rear parcels and was waiting on the bid from the state for the remaining three that were in tax delinquent status, which I received yesterday. The parcels containing the building have been paid and are not in default, but the storage yard parcels have been delinquent since 2011. I acquired the first parcel for about $1,750.00, and the remaining three will be around $5,400.00. Fair market value of the 4 parcels would be around $50K. Being that the properties have been delinquent over 5 years, I'd be receiving the tax deeds. Should I decide to purchase the remaining 3 parcels, my questions are as follows:
- Aside from receiving the mandatory back taxes paid + 12% from the owner, what are some other strategies that I could apply to this situation? Improve property and rent out as a contractor/vehicle storage yard possibly?
- Is there another profitable possibility for this scenario that I am overlooking?
- Should I walk away?
Any input would be greatly appreciated. I've purchase a handful of tax sale properties and done fairly well, but this is new territory for me. TIA!
