Tax Deed Property Rehab Project (Introduction)

I am very excited to announce a new tax deed property rehab project I am undertaking here on investmentpropertyusa.ca. Myself and my investor partners just purchased a nice little property at the Harris County tax auction (a.k.a. sheriff sale, tax deed auction) that we are planning to rehab or, for those that prefer the term, fix and flip. I thought it would be fun to document as much of the project as I can through you tube video and blog posts and share it with you from start to finish.

The video above explains more about the property we are calling the “Pickerton” house including some of the pre-auction due diligence that we did on it, the auction details and some of the numbers that we can expect from this rehab deal. In future videos I will show you our very first walk through of the property and various stages of rehab as we turn the worst house on the block into something that someone is going to love to live in.

Here are the numbers as we know them right now. Many are just projections as we have not yet fully assessed the state of repair inside this house.




Related: Tax Deeds! Bought Dirt Cheap!

“Pickerton Dr.” Fix & Flip

Pickerton Image

Purchased: At Tax Deed Auction

Year Built: 1954

Bed/Bath: 3/1

Square Feet: 1008 sqft

Lot Size:  7020 sqft

Garage:  None

Min Bid:  $18,930.42

This is the opening bid/reserve price. It is the sum of the property taxes owing on this property to the various taxing jurisdictions including the county, city, schools, colleges etc., as well as administration fees and penalties.

Appraisal Value: $64,000

The county tax assessor’s appraised value for this home for 2014

Estimated Repair Cost: $15,000

Auction Purchase Price:  $35,000

We were willing to bid up to $40,000 on this property and were pleased to get it for $35,000

After Repair Value: $70,000 – $80,000

Based on comparable properties that have sold in the area over the past year. 

Projected Profit: $20,000

Projected Annualized ROI: 73%

 I added an extra $5000 in random expenses when making my profit and ROI calculations

 

Learn more about buying investment property at tax deed auctions

 

 

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