Home, first-time buyers, mortgages

Investing Opportunities with Tax Sale Properties

As you can see from above, buying a tax deed provides you with a property full of equity. You can then obtain a
line of credit against the available equity and use those funds to invest in more properties.
For example, let’s say you have just obtained a $100,000 property from a tax deed. To obtain this property, you
probably spent about $12,000 to purchase the tax certificate and for administrative and legal fees.
Now that you own the property free and clear, you can obtain a $75,000 line of credit against the equity on the
property. This will recoup your $12,000 investment plus provide you with another $63,000 that you can use for
other investments—or improvements to the property.