While tempting to bid at auctions, it would probably be a good idea to have an inspector and appraiser (who work directly for you) to check these places out beforehand. You should go to the auction with a very clear idea about what you’d be willing to spend and which specific homes you’re really interested in…don’t settle! If the prices go over that amount, stop bidding! There will be plenty of other deals in the future.
Also, you might want to get more information about the HOA, its restrictions, and don’t forget about “special assessments” that might be coming in case some work didn’t get finished in the development (I’m NOT a fan of HOAs).
Quite frankly, those are not large homes, and really lack privacy (which you might not mind), and I think there’s room for further depreciation. Also, you might want to think about how the neighborhood will fare over time. Will you get a bunch of Section 8 tenants in there if investors buy the units up? Does it look like the future of “low cost housing” and would that bother you?
Whatever you decide, I wish you the best of luck!!!
