what is the best county to buy tax deed certificates in Houston Texas?

Question

I am actively interested in tax deed auctions in Houston Texas and my favorite county is Harris. However, the stiff competition from investors all over Texas makes it rather frustrating. Aside this County, what are the recommended Counties with active market and moderate competition from bidders?

Any assistance will be highly appreciated.

Thank you.

Any assistance will be highly appreciated.

Thank you.

Roy Oliphant · Answer

NA Onyido

It does seem there are more bidders coming to the tax auctions every month.  We have noticed significant increases in attendance (and prices) in Dallas and Tarrant; Harris has been competitive for a long time.   That said, it still depends on your objectives.  These counties still have a large number of properties every month, have easy access to contractors for repairs and have diverse renter communities so the properties can be made to cash flow easily.  Not to mention how many markets can you stay informed on.  I can guarantee a 900 sf 1940 frame in West Oak Cliff (Dallas County) should be evaluated completely differently than the same house in Iowa Park (Wichita County).

There are a number of counties in the Panhandle area that have had auctions recently.  These were probably less competitive than the big city auctions but so what.  If you acquire a property that cost twice as much to repair because you don't know the local contractors (and every house at the tax sale needs some repair) or takes for ever to rent because there s no economic driver in the community, are those really good deals?  They may still be but I think it is less likely.

Plus you have the issue that all of the auctions are held on the same day.  Can you afford to miss an auction that has 10 potential deals to attend one that has one or two?

What type of properties you are looking for and what counties you would consider?  We attend auctions all over Texas.  Maybe we have something that would fit your goals.

Felix K. · Answer

I've attended, the tax sales few times in Bell county.  Many showed, including realtors.  The realtors do their DD so they seem to know what they're worth, then there are individuals bidding frivolously.  Between these two groups, I can't seem to land on decent prices.  So I gave up going to them.

Stanley Okazaki · Answer

I'm up in Montgomery County and there are a lot of good deals out here. To be honest I'm not sure what tad deed certifcates are but I'm sure they have some sort of correlation with the way the market moves. A lot of wealth is moving up North. Conroe, Tomball and Spring have shown a lot of growth, but I've only lived in Houston for the past 6 months so maybe I'm all wrong haha

Kyle Daniels · Answer

@Roy Oliphant

What are the best sources for the most up to date listings?  I know that the Harris Co tax site links to two law firms, but only one of the links is currently working.  Have you used the Daily Court Review's service?

Roy Oliphant · Answer

@Cal Ewing

I cant say if you are wasting your time but if you have been seriously attending with the intent and means to purchase for 3 months and have yet to buy anything it may be time to adjust something.

Reasons why you may not be buying:

1) Target property was pulled from the auction

This happens to the majority of good properties, sometimes as late as 10 minutes before the auction starts.  The auction I attended this month had two properties that were still on the list when I left my house but were pulled by the time the auction started.

2) You are bidding but always out bid

You need to evaluate how you are determining you max bid

a) right comps for ARV

b) accurate repair estimates

c) ROI expectations

In other words how are you pricing the deal.  This is not really any different from any other REI source but it is very important to get right due to the limited information and time sensitivities of buying at the auction.

I have to say while we regularly buy in multiple counties (4 this month), Harris seems to be especially competitive as are Dallas, Tarrant, Travis and Bexar.  But that is why our investors let us do the hard work and then buy from us.

Cal Ewing · Answer

I have been bidding at the Harris County auction for the past three months and have yet to get a property. Am I wasting my time or do I just need to be patient? I like the fact that there is so much inventory at that auction but each month costs me money to do my due diligence and I am wondering if I should switch gears.

@Roy Oliphant you make a good point about investing in small counties with no economic drivers.  Perhaps patience is all that is needed.

I am also wondering if there are any people in Texas that can help me estimate general repair costs for things like shingles, siding and other common repairs.

Ndy Onyido · Answer

@Boyd McClean.

Thanks for the advice.

@Roy Oliphant

I will be interested in counties with the right investment dynamics of population, employment and growth prospects. I really do not know but i believe that Austin, San Antonio and Dallas areas will be good prospects but I will rely on your experience to guide me.

Thanks

Boyd McClean · Answer

Try the collar counties.

I have the same problem in San Antonio.

Whatever county you go to call ahead of time and find out

what their policy for paying is and whether you have to

register in advance.

what is the best county to buy tax deed certificates in Houston Texas?

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