Why the Winning Bid Isn't Your Real Cost
Foreclosure auctions attract investors since properties can sell below market value. But profit off the winning bid alone badly overstates your real return. After the gavel falls you owe closing costs, and if a former owner or tenant remains, eviction or holdover costs to remove them. Add loan interest and repairs, and the bill stacks up fast.
This calculator takes your bid, resale price, eviction costs, closing cost rate, loan details, and other costs to compute total investment, net profit, and return on equity. Financing amplifies returns via leverage, but it cuts both ways if resale falls short. Treat this as an estimate — costs vary by property and state, so pair it with a title search and professional advice.
Frequently Asked Questions
Cash-for-keys payments, legal fees, and sheriff or marshal fees to remove an occupant after the sale.
The rate is similar, but it's based on your bid and can vary widely by state.
Simple interest: loan amount times annual rate times months held before resale.