All Forum Posts by: KC Pake

Quote from @Beena Shah:

I am a residential agent, Is there a common platform to find multifamily deals. Any guidance to find deals online will be helpful.

Hello Beena,

Here's a list of platforms and resources to help you find multifamily deals online:

LoopNet: One of the most well-known platforms, LoopNet allows users to search for multifamily properties among other types. The platform is user-friendly, providing comprehensive details about listings including price, location, and cap rate.

CREXi (Commercial Real Estate Exchange): This platform provides listings for a range of commercial real estate properties, including multifamily units. The interface is intuitive and provides an array of filtering options.

Apartments.com: While commonly known for apartment rentals, the platform also has a section for buying and selling multifamily properties.

RealtyMogul: This platform focuses on crowdfunding for real estate but also features properties for sale. It's a good platform to both find deals and get a sense of what investors are looking for.

BiggerPockets: Beyond being an excellent resource for networking and education in the real estate sector, BiggerPockets also has a marketplace where users can list and find multifamily properties.

Local MLS: While the Multiple Listing Service (MLS) is primarily associated with residential listings, many also feature multifamily properties. 

Brokerage Websites: Major brokerages like Marcus & Millichap, CBRE, and Cushman & Wakefield have dedicated sections on their websites for multifamily listings.

Social Media: Platforms like LinkedIn or even Facebook have groups dedicated to multifamily real estate. Join these groups, participate in discussions, and keep an eye out for listings.

Best of luck with your search!

Quote from @Kevin Kim:

Hello

I just closed the 3 BED room half duplex SFH in Connecticut. I started marketing at Zillow for rent. I have received one inquiry about STR arbitrage. I was just thinking regular tenants 1 year lease BUT i haven't thought about SRT Arbitrage. This home is 2 blocks from major hospital and the home rent is more than average (very well kept, very spacious, newer home etc..) So far, a lot of Sec 8 voucher candidates ask question and i am thinking STR arbitrage can be my last option if i can't find good tenant? Anybody has any concern for STR Arbitrage?

Hi Kevin!

Congratulations on your new acquisition!

Short-Term Rental (STR) Arbitrage is an interesting concept and can be a profitable venture if done correctly. However, there are several factors you need to consider:

Location: Since your home is two blocks away from a major hospital, it might be ideal for medical professionals or families visiting patients for short periods. This could give you a consistent flow of guests.

Regulations: Make sure to check the local regulations in Connecticut and specifically in your city regarding short-term rentals. Some cities have stringent regulations, or they may require certain permits, licenses, and you might be subject to additional taxes.

Management: STR requires a different kind of management than long-term rentals. You will have to handle frequent check-ins and check-outs, provide amenities, manage cleaning services, and handle any issues that arise on a short turnaround.

Pricing: Short-term rentals generally can command a higher price per night compared to monthly rentals, but the occupancy rate can vary depending on seasonality and other factors.

Security: You'll want to consider investing in good security measures like smart locks, security cameras, and an effective vetting process for guests.

Wear and Tear: STRs can cause more wear and tear on your property because of the frequent turnover. However, with a good management process and the right guests, this can be mitigated.

Review Platforms: Sites like Airbnb and Vrbo rely heavily on guest reviews. One bad review can drastically affect your bookings. Ensure you provide the best service and amenities to garner positive reviews.

Section 8: If you're considering Section 8 tenants, keep in mind that there are specific rules and regulations you'll need to adhere to. It can be a consistent source of income, but you must ensure that your property meets all the housing quality standards.

As a backup plan, STR Arbitrage might be a good idea if you can't find a long-term tenant. However, consider the points mentioned above and see if they align with your goals and the amount of work you're willing to put into managing the property.

 
Good luck!

Quote from @Joshua Insua:

Hello, this is my first post on here I’m an active duty military member and licensed lender and my wife is an active realtor we’re looking to purchase our first of many investment properties in Florida and our open to take pointers and advice on our strategy.

We were looking at taking out a heloc on our paid off home(up to 750k) and wanted to start investing in the brrrr strategy and continue reusing the heloc to fund further more projects.

Our goal is to play the long game and invest in areas with positive outlooks on appreciation such as Tampa or Jacksonville but not too familiar with the markets in those areas

We aren’t sure which is the best route to start with as we’re leaning towards to multi-unit properties but is it better to start off with a single family unit? How could we leverage  our licenses and Va loan access to our advantage.

Hello Joshua, and welcome to the forum!

Firstly, thank you for your service. It's great to see that you're leveraging your combined expertise as a licensed lender and realtor (wife), to dive into real estate investing. Florida, with its growing population and attractive locales, can be a rewarding place for property investment. Here are some thoughts and pointers:

HELOC Strategy: Taking out a HELOC on a paid-off home to fund investments is a popular strategy. It provides liquidity and is often faster than traditional loans. Using the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy can be quite powerful if executed properly, especially if you're looking to roll the profits into the next investment without cashing out.

Markets: While Tampa and Jacksonville have seen significant growth and have potential for appreciation, each city has its own micro-markets. It would be wise to dive deep into local data and trends, and perhaps even connect with local real estate investor groups or property managers to understand nuances.

Multi-unit vs. Single Family:

Multi-unit: These can offer a better return on investment (ROI) in terms of cash flow, especially if one unit is vacant, you still have income from the other units. They're also efficient in terms of property management.

Single Family: They tend to appreciate faster and can be easier to finance and sell. There's also typically a larger market of renters and buyers for single-family homes.
Given your goals and the HELOC strategy, starting with multi-units might give you a better cash flow to service the HELOC, but it's essential to analyze both options in-depth.

Leveraging Licenses and VA Loan:

Licensed Lender: Having a lending background gives you an edge in understanding the financial intricacies, which can be advantageous in structuring deals.

Realtor: As an active realtor, you'll have access to the MLS, understand contracts, and can save on commissions when buying/selling.

VA Loan: VA loans offer fantastic benefits, like zero down payment and competitive rates. While VA loans are generally for primary residences, there are certain scenarios where you can use a VA loan for an investment property, especially multi-units where you intend to occupy one of the units. Plus, if you haven’t used your full entitlement, you might be able to purchase a property without a full down payment.

Best of luck on your journey, and feel free to ask any more questions!

Quote from @Ben Lawless:

Hello!

I've been working to get into the rental market in Jacksonville Florida with the eventual purchase of duplex and I have a few questions below that I think the BP community might be able to help out with.

1.) Who are your preferred property management specialists? I'll be investing from out of state for the foreseeable future and need a good team to help with management

2.) Who is your preferred investment property lender? This is my first time going through the loan process and I'd like to work with a group who is familiar with investment properties

3.) Where are your no-go areas for investing in Jacksonville? I've been to Jacksonville a fair amount and understand there are some rougher areas, are these worth investing in or should I steer clear? I'll be out of state so perpetual headaches are something I'd like to avoid.

I appreciate you taking the time to read this post, feel free to respond with any other wisdom you may have about the Jacksonville market.

Hi Ben,

I just posted a reply (to Leo's post) with similar information, so thought I would copy and paste it here for your reference.  I do not have preferred lenders/property managers but I know there are several great companies in the local area.  I think an experienced Realtor, with a background helping investors will be a key contact for you. 

See the response to Leo below!

Hey Leo,

Welcome to the exciting world of out-of-state real estate investing! Jacksonville is an attractive market with great potential, and your enthusiasm to dive in is commendable. Investing out of state comes with its unique set of challenges, but with the right team and due diligence, you can certainly thrive.

Here are some tips and suggestions to consider:

Local Realtor: Partnering with a knowledgeable local realtor is essential. They can provide insights into the market dynamics, neighborhoods, and property valuations. Given the zip codes you've mentioned, some areas are more promising than others depending on your investment goals.

Legal Team: Make sure you have a local real estate attorney to help with contracts, title checks, and any potential legal intricacies specific to Florida. Property laws can differ from state to state.

Property Management: This will be your eyes and ears on the ground. A good property manager can make or break your investment, especially when you're thousands of miles away. Look for someone with a solid reputation, timely communication, and transparent fee structures.

Lenders: While national banks are an option, consider local credit unions or regional banks. They may have better terms or more familiarity with the local market. Additionally, since you're investing out of state, be prepared for potentially higher down payments or interest rates.

Networking: Join local Jacksonville real estate investor groups online. Sites like BiggerPockets or local Facebook groups can be valuable resources. They can offer referrals, share experiences, or provide feedback on potential deals.

Local Market Analysis: Understand the rental market. Research the average rents, vacancy rates, and appreciation potential. This can help in determining if the numbers align with your investment goals.

On-Site Visits: If possible, plan a visit to Jacksonville before purchasing. Walk the neighborhoods, meet with potential team members in person, and get a feel for the city.

Trust, But Verify: While building a reliable team is essential, always verify information. Run your numbers, double-check contracts, and ensure due diligence on every deal.

Inspections: Never skip a property inspection, even if a property seems in perfect condition. Unseen issues could become costly down the road.

Contingency Plans: Have a plan B and maybe even a plan C. The world of real estate can be unpredictable. Knowing your exit strategies or backup plans in advance can be invaluable.

Lastly, it's natural to feel nervous, especially with your first out-of-state investment. Remember, every experienced investor was once in your shoes. The key is to be well-informed, lean on your team, and be adaptable.

I am an active real estate investor in the Jacksonville, FL area, so here is a brief rundown of the zip codes you mentioned:

32221:
Location: Western Jacksonville. This area is primarily suburban and offers a mix of older and newer homes.
Investment Potential: Traditionally, this has been an affordable area for families. The demand for rental properties can be consistent, especially for well-maintained properties.

32210:
Location: This is the Westside area of Jacksonville. It's a diverse neighborhood with a mix of residential properties.
Investment Potential: The area has historically seen steady rental demand. The Westside has pockets of growth and revitalization, so selecting the right neighborhood within the zip code is key.

32244:
Location: This covers parts of the Westside and the Orange Park area. The neighborhoods vary widely, from more urban to suburban.
Investment Potential: Due to its proximity to major highways and amenities, it has consistent rental demand. This zip code has areas with newer developments, which might appeal to a certain segment of renters.

32205:
Location: This is the Avondale and Riverside area, known for its historic homes and artistic vibe.
Investment Potential: This area has seen significant appreciation in recent years. It's popular among young professionals and families, making it an attractive area for long-term and short-term rentals.

32220:
Location: This is another part of Western Jacksonville. It's more rural compared to the other zip codes.
Investment Potential: This might be a good area if you're considering larger parcels of land or properties with more space. Rental demand may not be as high as in the urban areas, but property prices can be more affordable.

32216:
Location: This covers the Southside area near St. Johns Town Center. It's a mix of residential, commercial, and office spaces.
Investment Potential: Due to its proximity to shopping centers, offices, and major roads, it has robust rental demand. Properties here can have higher price tags, but the potential for both appreciation and rental income can justify the cost.

I wish you all the best in your venture, Leo!

Quote from @Leo Martinez:

Hi,  My Name is Leo, I'm a new investor and I live in California. I'm thinking of starting my first out of state rental property in Jacksonville, Fl (any of these Zip Code: 32221, 32210, 32244, 32205, 32220, 32216). I know I need to build a team (legal team, agents, Lenders, property management) and I'm open for suggestions, recommendations and referrals. I'm still in the learning process and a lil bit nervous about this venture but I'm willing to take the first step for this new venture.  thanks in advance. 

Hey Leo,

Welcome to the exciting world of out-of-state real estate investing! Jacksonville is an attractive market with great potential, and your enthusiasm to dive in is commendable. Investing out of state comes with its unique set of challenges, but with the right team and due diligence, you can certainly thrive.

Here are some tips and suggestions to consider:

Local Realtor: Partnering with a knowledgeable local realtor is essential. They can provide insights into the market dynamics, neighborhoods, and property valuations. Given the zip codes you've mentioned, some areas are more promising than others depending on your investment goals.

Legal Team: Make sure you have a local real estate attorney to help with contracts, title checks, and any potential legal intricacies specific to Florida. Property laws can differ from state to state.

Property Management: This will be your eyes and ears on the ground. A good property manager can make or break your investment, especially when you're thousands of miles away. Look for someone with a solid reputation, timely communication, and transparent fee structures.

Lenders: While national banks are an option, consider local credit unions or regional banks. They may have better terms or more familiarity with the local market. Additionally, since you're investing out of state, be prepared for potentially higher down payments or interest rates.

Networking: Join local Jacksonville real estate investor groups online. Sites like BiggerPockets or local Facebook groups can be valuable resources. They can offer referrals, share experiences, or provide feedback on potential deals.

Local Market Analysis: Understand the rental market. Research the average rents, vacancy rates, and appreciation potential. This can help in determining if the numbers align with your investment goals.

On-Site Visits: If possible, plan a visit to Jacksonville before purchasing. Walk the neighborhoods, meet with potential team members in person, and get a feel for the city.

Trust, But Verify: While building a reliable team is essential, always verify information. Run your numbers, double-check contracts, and ensure due diligence on every deal.

Inspections: Never skip a property inspection, even if a property seems in perfect condition. Unseen issues could become costly down the road.

Contingency Plans: Have a plan B and maybe even a plan C. The world of real estate can be unpredictable. Knowing your exit strategies or backup plans in advance can be invaluable.

Lastly, it's natural to feel nervous, especially with your first out-of-state investment. Remember, every experienced investor was once in your shoes. The key is to be well-informed, lean on your team, and be adaptable.

I am an active real estate investor in the Jacksonville, FL area, so here is a brief rundown of the zip codes you mentioned:

32221:
Location: Western Jacksonville. This area is primarily suburban and offers a mix of older and newer homes.
Investment Potential: Traditionally, this has been an affordable area for families. The demand for rental properties can be consistent, especially for well-maintained properties.

32210:
Location: This is the Westside area of Jacksonville. It's a diverse neighborhood with a mix of residential properties.
Investment Potential: The area has historically seen steady rental demand. The Westside has pockets of growth and revitalization, so selecting the right neighborhood within the zip code is key.

32244:
Location: This covers parts of the Westside and the Orange Park area. The neighborhoods vary widely, from more urban to suburban.
Investment Potential: Due to its proximity to major highways and amenities, it has consistent rental demand. This zip code has areas with newer developments, which might appeal to a certain segment of renters.

32205:
Location: This is the Avondale and Riverside area, known for its historic homes and artistic vibe.
Investment Potential: This area has seen significant appreciation in recent years. It's popular among young professionals and families, making it an attractive area for long-term and short-term rentals.

32220:
Location: This is another part of Western Jacksonville. It's more rural compared to the other zip codes.
Investment Potential: This might be a good area if you're considering larger parcels of land or properties with more space. Rental demand may not be as high as in the urban areas, but property prices can be more affordable.

32216:
Location: This covers the Southside area near St. Johns Town Center. It's a mix of residential, commercial, and office spaces.
Investment Potential: Due to its proximity to shopping centers, offices, and major roads, it has robust rental demand. Properties here can have higher price tags, but the potential for both appreciation and rental income can justify the cost.

I wish you all the best in your venture, Leo!

Quote from @Tom DiObilda:

I have 2 questions, one specific, and one very General.

First the specific one, ahs anyone paid for and used Crexi intelligence and is it worth my cash?

Now the General:  What paid tools are people using that they find to be valuable to their Investment Strategy?

Apologies if this is in the wrong forum, I'll move it if needs be.

Hello Tom!

Addressing your specific question about Crexi Intelligence:
I haven't personally used Crexi Intelligence, but from what I've gathered, many find it valuable, especially those in the commercial real estate sector. Its market data, analytics, and insights can be a game-changer for some. However, as with any tool, its utility largely depends on your specific needs and the depth of analysis you require. I'd suggest looking into their trial or demo if they offer one, so you can gauge its value for yourself. It'd be great if any other forum members who've used Crexi could chime in with their experiences.

For the general question on valuable tools for real estate investment strategy:
There's a wide range of tools out there, and the best ones often depend on the specifics of your investment strategy. Here are some that come highly recommended in the real estate community:

BiggerPockets Pro: Highly popular among real estate investors. It offers property analysis tools, calculators, and an expansive community for networking and learning.

CoStar: A comprehensive platform that focuses mainly on commercial real estate. It provides market analytics, property details, and comparisons.

Realtors Property Resource (RPR): Offers in-depth market data and analytics, beneficial for both residential and commercial investors.

PropertyShark: Great for property data, including details on ownership, sales history, property values, and more.

LoopNet: While known as a listing service for commercial properties, its premium features provide valuable insights and analytics.

DealMachine: Useful for investors focused on driving for dollars, offering tools for finding and managing potential deals.

Mashvisor: Focuses on residential property investments and offers insights on rental income, costs, cash on cash return, and other critical metrics.

Remember, the right tool for you will be influenced by your specific investment focus, whether it's residential, commercial, fix-and-flips, rentals, etc. It's always a good idea to take advantage of any trial periods and thoroughly explore a platform before making a full commitment.

Hoping other members can share their favorites as well. Happy investing!

Quote from @John Peter:

I just moved 460k into an account with 4.75 % interest. It will provide over $2k a month of income, risk free until I decide what to do with the cash. For the past year, I had been looking to invest in multi families somewhere around Tampa area. After factoring in the insurance nonsense, skyrocketing taxes and double digit increases in utilities and I'd be lucky to cash flow a couple of hundred a door. That's IF nothing needs maintenance or repair. So, my question to you more seasoned investors is.. when you can park your cash in a CD or high yield savings at 5.5%, why bother taking the risk, especially in Florida? Any ideas that I'm not considering?

 John,

Lots of things to consider, for sure!  As a fellow Floridian, I understand what you are saying.  Here are my thoughts.  Many of these have been pointed out in earlier posts.

The decision to invest in real estate versus a more conservative interest-bearing account like a CD is multifaceted. Here are some factors to consider:

Appreciation: Real estate, especially in growing markets like the Tampa area, has the potential for significant appreciation over time. Even if your monthly cash flow is modest, the value of the property itself can increase, leading to a potentially substantial return when you sell.

Leverage: With real estate, you can use leverage to control a large asset with a small amount of your own money. For example, if you put down 20% on a property, you control 100% of the asset and any appreciation it sees.

Tax Benefits: Real estate offers several tax advantages. Mortgage interest, property taxes, and certain expenses are deductible. Furthermore, there are tax strategies like the 1031 Exchange, which lets investors defer capital gains taxes by reinvesting proceeds from a sale into a new property.

Control: With real estate, you have direct control over your investment. You can make improvements, choose tenants, and decide on rental rates. This control can allow you to increase the value of your investment and improve cash flow.

Diversification: Real estate can be a way to diversify your investment portfolio. Having a mix of stocks, bonds, and real estate can protect your wealth from the volatility of any one asset class.

Inflation Hedge: Real estate is often seen as a hedge against inflation. As the cost of living rises, so too can rent and property values, helping preserve the purchasing power of your money.

Cash Flow: Even a modest cash flow, when combined with appreciation, tax benefits, and principal paydown, can result in a decent overall return.

Tangible Asset: Unlike stocks or bonds, real estate is a tangible asset. Some investors appreciate having a physical property they can see and touch.

All the best,
KC

Quote from @Account Closed:

Hello,

My husband and I have wanted to invest in real estate for years now and recently made the decision to purchase a new home while converting our primary residence into a rental. Since we are both 100% disabled veterans, we each get the 100% property tax exemption and we currently don't pay properties taxes on our primary residence. Our primary residence is a 5 bedroom, 2.5 bath, 2 story home, built in December 2019... Our original plan was to buy a new home, using the VA Loan and rent out our current home (under the impression that we wouldn't have to pay property taxes on EITHER property).. He would have used his tax exemption for the rental and mine would be used for our new primary residence.

Fast forward... We have found the new home, put down earnest money, and signed initial contract docs. The home is perfect for our family. It has everything we need and I could definitely see us there long term. $468k home. We locked in a 4.2 interest rate. Bigger home, huge yard, plenty parking. But I've recently discovered that we can't use the property tax exemption on a rental property. It has to be used only on our primary residence homestead.. I don't know how we missed this major point, but this makes me want to back out and lose the 7k earnest money that was put down.. I wasn't expecting to have to pay property taxes, as this would increase our out of pocket costs by about 1k a month. I want to back out, but my husband still sees opportunity and is very motivated to keep going. When we have vacancies, we will probably have to pick up side hustles to stay afloat. This is not something that I'm interested in doing because I recently got my real estate license and want to focus on my career. But I am not making money in real estate at the moment and would have to get something quick. We also have 4 young children and I would have to remove my 2 youngest from daycare in order to save money. We would also have to cut back on saving until we find a renter. We currently have under 15k saved. 

His thing is... this is an Investment and yes, it'll be hard right now.. But in the end it'll all pay off. He also says we may not get an opportunity like this again soon. Low interest rate, bigger property, 3 car garage, huge yard for kids to play.. basically our dream home. I am just having trouble seeing the light at the end of the tunnel. We have a very comfortable life now and I don't want to complicate things by putting too much on our plate. I don't see how it's a good investment if we have to cut back on saving, find side hustles, or even struggle for a little bit while we have vacancies. Yes, we have always wanted to invest in real estate, but this isn't how I wanted to go about it. He says he has it under control, we won't struggle, and we'll be fine. He is also getting a hefty raise soon, so he is taking that into account. I am still worried. He is very driven and determined to make this work. Backing out is not an option for him. He brought up the fact that we could transfer the rental into our business name or a trust to avoid paying property taxes. Does anyone have an idea on how that works?

Overall, what are your thoughts on this situation? We close in a little over a month. Are there ways that we could get around the property tax like he says? How was your experience with your first investment property? Should I just suck it up because this is just apart of the game? I am new to this and it's all very overwhelming. I am in dire need of some advice. We need someone that could properly guide us so that we can minimize these road blocks in our future. Thanks.

Hello Tichina,

First off, thank you for your service. Investing in real estate is a big decision, and it's understandable to have reservations, especially when unforeseen complications arise.

Property Tax Exemption: Unfortunately, many jurisdictions do have the stipulation that property tax exemptions, especially ones for veterans, only apply to primary residences. While transferring a property into a business name or trust can have some benefits, it typically doesn't absolve you from paying property taxes. Instead, the tax liability often transfers to the entity. Each jurisdiction may have its own nuances, so consulting with a local tax advisor or attorney is paramount.

Financial Strain: Real estate investments, especially when starting, can strain your finances. The unexpected cost of property taxes on your rental property complicates this. While your husband is right in that investing often requires taking on some risk, it's essential both of you are comfortable with the level of risk. Your concerns about childcare, potential vacancies, and unexpected costs are valid.

Potential Benefits: On the brighter side, the potential appreciation of both properties, the rental income from the first house, and the tax benefits associated with property depreciation and mortgage interest deductions might still make this a worthwhile endeavor. However, these benefits should be weighed against the costs and uncertainties.

Alternative Strategies: If the property tax on the rental is a deal-breaker, you might consider:

Selling the current home to capitalize on its equity, then using those funds to finance the new home and possibly another more affordable investment property later on.
Renting the new home instead and staying in the current one (though this isn't ideal given the emotional connection you've developed with the new home).

Communication is Key: The most crucial aspect is communication between you and your husband. Financial decisions, especially of this magnitude, should be collaborative. It's essential to find a balance between his drive and your reservations to ensure you're both on the same page.

Remember, investing in real estate is as much about the numbers as it is about timing. While there will always be another "perfect" property, ensuring you're financially and mentally prepared is critical. It's okay to step back and reassess if you both feel it's not the right time.

Best of luck with your decision and your journey into real estate!

Quote from @Kalp Mehta:

Hello BP

If I extend the lease and increase the rent, should I adjust the last month's rent to the new rate?

Hi Kalp,

When thinking about adjusting the last month's rent after a lease extension and rent increase, consider:

Local Laws: Always consult local regulations about rent adjustments.
Lease Agreement: Check your current agreement for relevant clauses about rent changes.
Fairness: If rent has increased, it's equitable to adjust the last month's rent to the new rate.
Accounting: Updating the last month's rent to the new rate simplifies record-keeping.
Tenant Relations: Clear communication about lease changes can promote trust between you and the tenant.
Implementation: If adjusting, inform the tenant in advance about how you'll handle the difference.

In summary, it's often practical and fair to adjust the last month's rent to the new rate. Ensure you comply with local laws when doing so.

Quote from @Azim Aziz-Uribe:

I have been looking to place bids on tax deed properties. Has anyone been successful in buying these types of properties? Also, when conducting one's due diligence, what information are you looking on for the house and how are you finding information re: liens, encumbrances or title defects?

Lastly, where are you finding these properties? 

I am looking to get started this month and all your help is appreciated.

Thanks!

Greetings Azim,

I have had some experience with tax deed properties, and I'd be happy to share some insights.

Success in Buying Tax Deed Properties: Yes, many individuals have been successful in buying tax deed properties. However, like any real estate venture, it's not without its risks. Success often depends on the state/county regulations, the competitive landscape, and of course, the due diligence conducted prior to placing a bid.

Due Diligence:

Information on the Property: Always start with the basics like the location, property type, and condition. This could involve visiting the property (if possible), assessing the neighborhood, and checking for any structural issues, or potential zoning restrictions.
Liens, Encumbrances, or Title Defects:

Most counties have a Recorder of Deeds or similar office where you can obtain property records. These documents will list any mortgages, liens, or other encumbrances against the property.
There are also title search companies that can conduct a thorough search for you, for a fee. They can provide a detailed report of all recorded encumbrances against the property.

It's crucial to be aware that tax deeds might not wipe out all other liens, so you could potentially be buying a property with existing debt. Make sure you understand the rules in your specific county or state.

Finding Properties:

County or State Websites: Many counties or states have dedicated websites that list tax-defaulted properties up for auction. Often, this is done through the county's Tax Collector or Treasurer's office.
Tax Deed Auction Houses: Some states or counties may use third-party auction houses to conduct these sales.
Local Newspapers: Many jurisdictions require tax sales to be advertised in local newspapers.
Real Estate Networking Groups: Joining a local real estate investor group or association can be a good way to get the inside track on upcoming tax deed sales.
A few words of caution: Tax deed investing can be lucrative, but it's not without its pitfalls. It's important to conduct thorough research, be aware of all the risks involved, and possibly seek advice from a real estate attorney or professional familiar with tax deed sales in your area.

Best of luck as you embark on this venture, and I hope you find some great deals!

Cheers!