The 1859 House
I want to take you on a journey with me, the journey from auction to cash flow on a house I recently purchased.
I am a big fan of buying cheap real estate at auctions online. This is a strategy I began developing in 2018 & am refining each year. Every property I buy has a different story, no two are the same. I have no idea how the story of this house will play out, but I look forward to sharing the journey with you!
Lets start with the basics.
The house was built in 1859 - hence it's name, The 1859 House.
I bought it sight unseen & don't know anything about the inside. The information I have comes from property records & the auction site.
Here's what I do know: It is located in Saginaw, Michigan, it's 1495 sqft, two stories, on a small 0.1 acre residential lot. I believe it has 3 bedrooms & one bath, but this is still unconfirmed. Newer roof. Likely occupied.
My winning bid at auction was $12,000 - a bid I placed online, from the comfort of my own home. To complete the sale I press a few buttons on the auction website & send a wire. I also have the option to pay by credit card with an extra 2.5% fee. Could not be more easy.
On top of the winning bid, there is a 10% buyer fee - $1,200, a $30 recording fee for the Deed, and the current taxes that are due $775. Bringing my all in price for The 1859 House to: $14,005. The Zestimate on it comes it at $36,200 - but again, I have no idea what the condition it inside.
The auction I purchased from has it listed as occupied. I also know how to check the utility records & it does appear that the utilities are active, another indicator that it is occupied. There is also a cat in the window of the most recent pic (above). I look at these as all good signs, it usually means the house is in livable condition!
On my next post I will go into the first steps I take after winning a house at auction, I hope you'll continue to follow along!
Find me on Twitter at @SilverInvests & on IG @SilverSpringsConsulting
In the meantime, if you're interested in buying cheap real estate online like I do, I've put all my secrets & strategies into this awesome guide, available now!