Find out what your rules are for abandoned properties, clean it out, and get it re-rented.

In my opinion, the most important thing is to establish some sort of system and rules for yourself that will make the process less scary to you.   

Do you meet the 1% rule?

PM me if you want more info about them (I think BP Forum rules prevent me from posting phone numbers, email addresses, and website addresses.)

Asking Price 215000 Primary Inputs Purchase Price($) $ 190,000.00 Downpayment(%) 3.5% Units(#) 2 Monthly Rent($) $ 1,150 Occupancy Rate 75% 30 Year Loan Rate(%) 4.50% 15 Year Loan Rate(%) 3.90% Secondary Inputs Closing Costs(%) 6.0% Property Tax(%) 1.8% Insurance(%) 0.8% Maintenance(%) 10.0% Property Management(%) 10.0% Improvements($) $ 20,000.00 Closing Costs($) $ 11,400.00 Inspections/Misc($) $ 600.00  Value (30-Year Mortgage Scenario) Monthly Rent $ 1,725 Annual Rent $ 20,700.00 Value Per 2% Rule $ 86,250 Value Difference (2% Rule) $ (103,750) Annual NOI $ 13,800 ROI (Pre-Tax) 8.36% ROI (Post-Tax) 8.1% CAP Rate (50% Rule) 7.3% CAP Rate (Assumed Expenses) 6.0% Annual Expenses Annual Property Taxes $ 3,420 Annual Maintenance $ 2,070 Annual Insurance $ 1,520 Property Upkeep/Other $ 200 Property Management $ 2,070 Total: $ 9,280  30-Year Mortgage Results Money Down $ 38,650.00 Monthly Gross Rent $ 1,725.00 Monthly Loan Pmnt $ 929.01 Effective Rental Income $ 20,700.00 Annual Loan Pmnts $ 11,148.09 Annual Expenses $ 9,280.00 Total Expenses + Loans $ 20,428.09 Annual Cash-Flow (Pre-Tax) $ 271.91 Annual Return (Cash-Flow + Equity, Pre-Tax) $ 3,229.76 Annual Post-Tax Cash-Flow (Pre-Tax) $ 190.34 

I have a guy looking to sell a few of his Broad Ripple properties that he bought over 10 years ago that are still cash flowing and have great renters, but he would sell them if someone really wanted to give him what the homes are actually worth....problem is, they don't really hit the 1% rule and are not "deals" like most investors want. 

It is breaking all the rules and will likely continue to do so.

Check the rules of the auction and see ow long you have to settle up once you win. 

;) You mentioned CA, so maybe the rules are different for other states?

Rules are different on a HUd that is a RM. 10% Em.