I Bought 3 Tax Deed Properties in Texas! Now what?

[Steven Payne]

First of all, I want to thank Biggerpockets and all its members. I've been studying the past 6 months and I finally bought three properties today at a tax sale auction. They were all great deals, paying between 20% -50% of retail value. Two of the places have people living in them. One is a renter and I think the other is the owner. The third house is vacant. I was told I probably shouldn't contact the occupants until I get the sheriffs deed in the mail. I should get that in 2-3 weeks. My first question is, should I go ahead and get insurance on the properties now? After I receive the sheriffs deed, How should I contact the occupants and what should I say? Is there anything that I'm missing? My plan is to use these as rentals. Thanks for reading and I look forward to the feedback.

[Roy Oliphant]

@Steven Payne

First, congrats on taking the first steps.  May I ask what counties you bought in?  We usually initiate contact with the resident and/or owner ASAP.  Certain rights are dependant on the deed but you did actually purchase the property at the auction and are now the owner.  Insurance should be initiated as soon as you can get it in place. 

I suggest you determine the condition of the property and intent of the previous owner before you start collecting rent.  Remember, once you intend to rent you are responsible for ensuring the property is compliant with the rent codes.  There may be issues in the properties that will require you to spend significant money or risk fines. 

Feel free to PM me for any specific questions.