Redemption Rates - Texas Tax Deeds
The brief question:
Does anyone have experience or information related to redemptions rates in Texas (or even better, Houston / SE Texas)?
My reading on Texas tax deeds suggests vacant land is seldom redeemed by the prior owner / tax debtor – I’ve seen the redemption rate suggested at 5 to 10%; i.e. 90 – 95% go unredeemed.
I have found less reference to the percentage of property with improvements (houses) that go unredeemed in Texas. Info seems to point to nationally the redemption rate is 95%+. I recognize Texas is a hybrid state and the experience factor could be much different.
The longer story / a bit to insight into why ask?
I about 30+/- years into a good career (full time non real-estate job) and looking toward easing into real estate investing. The only deals I’ve done is buying selling my personal residences from relocating with my company on average every four years. I am not in any particular hurry to do “something.” I am looking to get educated and get small-scale experience prior to retiring from the career in 5 to 6 years. Then I would like to have some scalable presence to keep me active and provide a positive cash flow “hobby” (which could increase my number of non-positive cash flow hobbies.)
In the last 6 to 12 months I have spent a good amount of time educating myself on tax lien / tax deed / hybrid topics, particularly related to Texas and the counties in and around Houston. I live in Fulshear, Fort Bend County. I have attended several tax sales, only observing – purposely did not bring a cashiers check. I regularly do a good deal of “as-if-I-where-going-to buy” due diligence in advance and feel pretty comfortable around monthly constable sales; watching bidders, prices etc.
I haven’t settled on a strategy (and could chose a different strategy pre- and post retirement). I.e. vacant lots, homes to hold / rent, homes to flip, paying higher prices for nicer properties to increase chance of redemption and realization of attractive return rates, etc. So, if any one wants to offer experience or opinion in the area of strategies – it’s welcomed.
Tangent story: At one sale I saw a lady buy the tax deed on 1+ acre lake in the middle of nice neighborhood. It didn’t appear as a lake on Google Maps but I had done a drive by – guessing she hadn’t. I hope wanted it for fishing. She was across the crowd from me at the sale and I wasn’t able to get over to her before she had bought it or I would have at least showed her the picture I had taken on my drive by to be sure she knew what she was bidding on.