Hello Bigger Pocket Family- I am in the market to purchase my first tax lien property. After receiving rights to the property, I plan on finding a renter. My first question for everyone is- Can I rent the property out during the redemption period?
If the answer is yes, can I rent the property out to a tenant receiving section 8 housing?
I would like to thank everyone who responds in advance!!! Also, I'm open to any additional information or recommendations. This will be my first purchase and I want to make sure that I take everything into account to prevent this investment from being an epic fail!!!
1) you can collect rent from the tenant during the redemption.
2) you can make structural repairs to the property, NOT COSMETIC to the repair & maintenance of the property.
3) all the cost relate to the maintenance can be charged back to the owner when redeem.
4) redemption period- 6 months for non owner occupied & non farm land, otherwise 2 years.
5) owner status starts at the suite day, not tax sale day.
6) TX is redeemable deed state, not lien.
Tom- thanks for clarifying the information about renting during the redemption period. Great point about the structural vs non structural repairs. What I find interesting is that I can fix structural problems but I can't paint or replace flooring(if needed) in order for the property to be in livable condition. Also, I didn't realize that ownership begin from initial day of suit vs date of auction. From what I have read, I am not allowed to go inside of the property. Is that true? Can I get the property inspected before auction?Thanks again for the valuable information.
You are correct.
It is illegal to trespass on other people's property.
You have no right to hire home inspection.
After you won the tax deed, you have all the right until the owner redeems.
Do not overbid. do your homework, set a maximum limit & do not let your emotions takes over during bidding. It's a business.
Tom- thanks for all your advice! Your valuable information is greatly appreciated!!
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