Ontario Tax Sale Property Forum
Tax Sale Forum => General => Topic started by: Flip It on May 27, 2006, 05:52:12 PM
-
I am new to this whole tax sale property thing, but from what I've seen so far, there could be alot of money to be made if you can win a tender and flip the propertiy. The only problem being, most of the listings seem to be in small towns where finding a buyer for the property may be difficult. Do any of you buy to flip asap, or do you sit on them? Have you ever bought a property that looked like a good investment, but got stuck with it because you couldn't find a buyer?
Jeff
-
Fliping homes is an interesting topic. I would say if the property you purchase is worth the amount you calculated previously then you are in a no lose situation. Hold the property until you can get fair market value. Property values keep increasing and since it is a tax sale property you will have no mortgage payments(in most cases). You will have insurance and property taxes and repairs to pay for, but in the end I can only see an upside and in the meantime you could always rent out the property.
Keep in mind selling a home isn't a quick process and if you want to get full value holding might be the best option. Give yourself at least 2 months to sell the property in your calculations.
-
You need to have sufficient capital on hand to carry you through. If the land looks like it can be flipped quickly, then you can minimize your involvement with it. However, most of these properties needs some work - they have been neglected for some time and that is why they are up for sale.
You also need to know what the market is doing in that area, if it is on the rise then holding would be prudent, however if it is not moving you may want to get in and out quickly.
-
Keep in mind that flipping a property isn't like flipping a house. A house in Toronto is usually sold within 10-14 days after being put on the market. For cottages around Muskoka a property takes over 6 months on average to sell. For basic non-waterfront properties it could take years to find a buyer willing to pay "market value" for it.