Virtual Assistant · Nigeria · Member since 2026 · 4 posts · 1 vote
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.
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.
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.
Correction to my earlier reply above: I don't bid at tax deed auctions. I run pre-bid public-record checks on Florida parcels for people who do, and I shouldn't have written it as first-hand buying. The checks I listed still stand: code-enforcement and other city/county liens can survive a Florida tax deed if the sale proceeds don't pay them, and once the winning bid is paid there's no redemption period in Florida. Confirm deposit rules on the county clerk's auction page before you bid.
Great question. I think tax-delinquent properties can offer some solid opportunities, but the due diligence is extremely important. Making sure there aren’t any title issues, outstanding liens, redemption rights, or unexpected repairs can make a big difference in whether the deal is actually profitable.
From the business funding side, I also believe having access to capital before attending an auction is important, especially when deposits and closing deadlines can move quickly. Business lines of credit or other financing options may give qualified investors additional flexibility.
I’m curious, are investors finding it more challenging to locate profitable tax-delinquent properties, or to secure the funding needed to close on them?