Virtual Assistant · Nigeria · Member since 2026 · 4 posts · 0 votes
For those who've closed on tax delinquent properties, was the extra legwork worth it compared to a normal MLS or off-market deal? Curious what surprised you most.
Englewood, NJ · Member since 2018 · 356 posts · 60 votes
3d
I've been buying at Broward County (FL) tax deed auctions and yeah, the diligence is very much worth it. The big surprise for me was how much equity is already baked in. Most of these properties have been sitting for years with the owner long gone, so you're often looking at 80-90% equity just from the tax lien amount vs actual value.
The part that catches people off guard is the title situation. Tax deeds in Florida wipe out most liens but NOT everything — municipal code violations can stick to the property. I had one parcel where the back taxes were only $22K but there were $15K+ in open code violations. If you don't check the code enforcement records at the county level, you'll buy a problem.
My process now: pull the folio from the property appraiser, check for open permits and code violations (both are searchable on the county site), drive the property, and run comps through the appraiser's site before I even think about bidding. Takes maybe an hour per parcel.
The ROI on that hour is massive though. I'm seeing parcels at 60-70% below ARV that would never show up on MLS. The catch is you need to move fast — auctions are competitive and you typically have 24-48 hours to fund after winning. Cash or hard money only, no traditional financing.
So yes, absolutely worth the extra diligence. Just go in with eyes open about what you're actually buying.