Thinking of trying tax lien sales this year.

[Thomas Carney]

Last year I was told about trying my hand at tax lien sales but it was after the time that the properties tax certificates were being sold.  I saw the property list last year and they had homes still in good shape for as little as $1000 for the tax lien certificate.  This year I feel like I can get a jump on things because in my city (Baltimore) tax lien certificates go on sale May 1st.  I just want to know is it any pit falls or things I should know about before I pay my $100 fee to participate or should I just stay away because it's not worth it.  Thanks in advance for all advice!

[Ned Carey]

@Thomas Carney there are properties for less than even $1,000. I took a renovated property for a $580 lien. I bid $8000 but it was worth a lot more than that. I think I made $26K on that original $580 investment. 

That is the good side. Tax sale is very competitive. Good properties usually get bid up pretty high. The lower end of the market sometimes goes for just the lien amount but it is very risky.

Like any aspect of real estate investing it can be very lucrative if you do it well. There are a number of older threads here on tax sale in baltimore, that go into a lot of detail. Worth searching out.