Are tax liens a smart strategy in a hot market? (Indiana)

[Shane Starr]

We're new to BP and investing, so we're researching and learning, in order to better define our strategy.

Long-term, we're interested in buy & hold single-family rentals. We live in Indiana -- so cost-of-living is reasonable -- but like most parts of the country, the market has really heated up. We've saved some cash to get started, but I'm hesitant to jump into buying houses, not wanting to pay top dollar. I'm wondering if purchasing tax liens would be smart strategy for right now -- a way to earn a decent return, while waiting for the market to cool off before jumping into purchasing houses.

I would appreciate any input from the community. Does my line of thinking make sense? Or would I be better to focus on finding deals for houses, even in the hot market?

Or, are there other strategies you would suggest in a hot market?

Thanks in advance for any advice.