As I have wrote in the past I have been researching state held tax lien property. Today I received a slip saying we have certified mail at the post office . Its from the state property office so tomorrow I will have the tax deed ! Next week me and my son will get to secure and winterize this house to stabilize it till I have the money and time to work on it.
When I sent the money for this house I set aside 2500$ for the repairs and renovations to bring it to sellable shape. My son was going to live there as we worked and until it sold. The best plans change without warning.
Last Friday the great state sent us 5 parcel prices that we had requested . We submitted 28 request and have received a total of 12 price quotes. Out of the last 5 there was 2 we couldn't pass up. One of them was 2 acres in a nice farm area for 128$ but its just a lien till May then it can be deeded . It is over grown but has a teardown house and small barn that would yield a lot of lumber . My son loved it so I sent a check. Small price to get him a place. He now has 3 places that will be deed able in May. I hope and pray one of them isn't reclaimed.
The other parcel is less than 2 miles from my home. It has 3.25 acres is on a good road and has 240 acre of timberland behind it that will never be sold and is 30 years from harvest. It has an old mobile home and a shed. It has power, water, gas and a septic system on site. Unfortunately it has a high price 4,600$ but it is an immediate tax deed . AS it sits it is worth 12,000$, with a 1,000$ in materials and 2 days on my tractor it would bring twice that.
As I said earlier I had 2500 set aside for the first house. Now with this 3 acre available I need it and will be barrowing 2,000 from the wife to make it happen. instead of plunking down the money we are going to do a 4000$ dollar loan on CDs. But it will leave my cash on hand below what I like.
I worked hard to save this money it had been for a truck but I couldn't pass these deals up. 6,000 out of pocket with property alone worth 24,000. After repairs possibly up to 42,000 . 5 liens possibly becoming deeds in May both kids out on there own with a second property each. Yea its a risk but it has a good return.
I HOPE I DONT GET ANY MORE DEALS I AM BROKE again.
Congratulations Gary on your "Deed Rich, Cash Poor" status.
ReplyDeleteThank you assets are nice but being cash strapped is worrisome . I would advise most people to only spend money they can do without for 3 to 4 years. As almost 99.5 liens are repaid in that period.
Deletesounds great. you are a go-getter!!
ReplyDeleteThanks Deb. This started as a way to find low cost land for my Son . It has morphed into a way to get my daughter a place and me into 2 cleanup repair flips. Once started it is like a treasure hunt . The trick is to find abandoned property due to death or divorce and they just moved away.
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