Extra costs when Buying Tax Liens/Deeds?
Outside of the actual bidding of Tax Liens/Deeds at tax sales, what are some extra costs that an investor would run into throughout the buying (and selling if that’s the exit strategy) of these Liens?
Let’s just say there’s a piece of property that has $1,000 of unpaid taxes and I’m bidding on it to acquire the lien certificate. Outside of what I actually end up paying for it, what are some other financial costs of this whole process. I know each scenario is different, and the state I reside is Florida so this example would be in a hybrid state.
I’m really trying to gauge what my max bids would be and my range, but each time I research this investing topic, I find another term/process that needs more money. Florida gives two years, so I would have to pay for the bid, and then another year of taxes if not redeemed? Should I factor in maintaining the land/property for a certain amount of time.
I suppose my main concern is not biting off more than I can chew and making sure my ceiling still leaves me above water. Any costs that investors of any experience level run into more often than not can provide I would feel much more comfortable.
Thanks!