Simulation: a fictional property for practice.

An IRS auction: what does the 180-day wait cost?

The IRS is selling a house seized for unpaid federal taxes. Work out what you own, and when.

A fictional house at an IRS sale. The redemption rules are federal; possession follows the law of the state where the property is.

• Sale: IRS sale of seized real estate
• Your bid: $120,000
• Value after repairs: About $230,000
• Repairs needed: About $35,000

Mission 1: The 180 days

What happens after the sale?

• The owner, or anyone with an interest or lien, can redeem for 180 days by paying my price plus 20% a year, compounded daily
• I get the deed immediately, with a clean title

Other liens may come with the property. Have a title professional check before you bid.

Mission 2: Can you flip it within 90 days?

Your plan was a quick flip. Does it work?

• No. The redemption period alone is 180 days; build it into my holding costs
• Yes, if I start repairs on day one

If someone redeems, you earn 20% a year on your price for the time it was held, which is a good return, but not the flip profit you planned.

Would you bid $120,000?

Buy, investigate or pass? Work through the drill to see what an experienced investor would weigh.