Profile picture for mtber102

Any thoughts on buying a house that is in a tax sale on the west side of indianapolis?

I am able to pick these rental houses up for 3000 a piece on the west side of indianapolis, off of west michigan st., just past white river. They will continue to be rentals and I am trying to figure out the major downside to doing this.They are already rented and they are properties that my dad has owned. Apparently the maintenance is up to date, even though they are kind of shabby on the outside.
  • May 13 2009 - Indianapolis
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

Profile picture for dennygiza
Try to find out if there are any other liens on the property first.
  • June 02 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

it is a very good rental neighborhood. If you buy these properties at a tax sale there isn't too much risk involved. You do want to have a title search done on them to make sure you don't have any major liens on the subject properties.
The bright side is that incase the owner pays the back taxes and gets the house back you make money on the deal. In Marion County the owner has 1yr to redeem back taxes. If they redeem the taxes from month 1 to month 6 you get 10% on top of what you paid for the taxes. From 6 months 1 day to the 1yr mark and they redeem you get 15% on top of what you paid.
In accuality though, you will only get to keep about 1 out of 100 houses you buy at tax sale. so don't look at it as a way to actually buy a house, think of it more like a savings account with high interest :D
  • June 02 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hire an Indianapolis Attorney to help you purchase. It is a good price, but Indiana taxes are VERY high for those who do not live in the homes per se.  I almost bought a home in this area, but decided against it because there are better areas, but the price is right.... Tough rental market I hear, but if you are willing to fix these places up... it might be a good deal.  I personally love indy, but I am also 2,000 miles away.
  • May 13 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

And depending on the laws of Indiana, you may end up acquiring mechanics liens, IRS liens and other financial liabilities that are attached to the property. Make sure you will have clean title before acquiring these homes.
  • May 13 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for ChandaB
Only major risk you have is if the owner comes up with the funds to pay the back taxes within the time frame they are allowed.  If they do, they can take the house back...
  • May 13 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.