Houston Texas Tax Deed?

Question

Is there anyone in the Houston area that invest in tax deed properties if so can you tell me the process to get started. BTW I’ll be going in with 30k in cash just wondering will that be enough to win a bid at a Auction thanks

Sam Craven · Answer

tax deeds are not for the newbie.  We have a 6mo to 2 year redemption period on our tax sale properties and they only need a utility bill from before the foreclosure to redeem in that 2 year time period.

The tax lein also does not remove any other loans on the property.  So get a good title team but most will not pull that many reports unless you are a volume buyer.

Best advice I have for you Willie is to take that $30k and go find yourself a $150k ARV flip and make money the easier route.

Willie Francis · Answer

@Shahriar Khan thanks that’s a good idea I will keep that in mind. How do you feel about 20% down conventional loans on sfh

Shahriar Khan · Answer

@Willie Francis tax route may not the be the best option at that price point . Most of the harris county properties at the price point (and a bit higher) its highly likely that you will end up getting an empty lot with a run down building which may or may be there by the time you make acquisition (i.e. city already sent notice and may demo it for you) ...i would take that 30K and find a rehab house and use hard money to buy and your funds to repair and refi to take all cash out and start renting ..

Willie Francis · Answer

@Shahriar Khan thanks for the advice. My plan is to buy and hold for rental use

Shahriar Khan · Answer

@Willie Francis agree with @Sam Craven .. you will have a problem with money being stuck ..best case scenario .. you buy something at tax auction and then wait for 6 months.. you would still not be able to sell the property via a title company. Most of the title companies will want you to own the property for 2 yrs and some may do it for 1 yr. In other words your money will be locked in for min of 12 months.

You have couple of options depending on your level of involvement ..buy-> fix->  flip or buy land and build .. either way you would need to be boots on the ground unless you partner with someone.

Keep us posted.

Willie Francis · Answer

thanks Sam for the advice

Houston Texas Tax Deed?

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