I'm sure I'm an oddball here on BP...not a pro, but a renter who wants to buy her primary residence at a Tax Deed Auction. In my state, I own the property on the day after I've paid cash for my winning bid.
I know it's a major risk, but the county assures me they're primary lien holder and the only deed concern I would have to worry about is an IRS lien (the property doesn't have one). Their rules verify I don't have to worry about any other non-governmental liens and their staff confirm they keep the file of who was served before the tax foreclosure judgement over 6 months ago. I've also spoken to a lawyer who says he'll have to re-do the service to parties with an interest in order to secure quiet title and I should budget $1500-$2000 when I'm going to sell.
So, in the immediate short-term, I've done the research I can on costs and relevant data (after-repair value, comps in the neighborhood, crime stats, prior sale prices, etc.) but I'm just not certain what to budget for repairs on a home I can't get into.
The brick exterior and the roof look fine, but all the windows are covered with sheets. No one answers the several times I stopped by to knock, but the electric company says there is consumption and someone's living there. I figure the costs for eviction are minimal (bailiff + his helpers are about $250, but I'll try something like a cash for keys), and anyway, how bad can the house be if someone lives there? The 2-year old zillow pictures for a rental listing at the same address show a nice interior in the home (refinished floors, new paint, new carpet). I can look through the kitchen window and that room looks pretty much like the older interior pictures...
The county says they do not bill for water service, which implies there's a well (and septic) but the county says they don't have any records prior to 1992 and they have no records (permits) for this property (after this time).
The home insurance company says they'll sell me a landlord's policy on the sale date that should cover major damage (I verified this information three times and am going to their office to review the policy declarations), but I can't begin to think about how much to budget if they don't cover something, like a crack in the slab (2300 sq ft trilevel), if the well needs to be redrilled, or if the occupant pours concrete down the drains.
What is the average investor's estimate for their repair budget in a 130-170k neighborhood?
Thanks for any help...
