Real Estate Back Taxes – How Much Is It To Buy a Property With Back Taxes?
One of the most common questions asked when dealing with real estate back taxes is “how much is it to buy a property being sold for back taxes?” The answer may property tax surprise you: some properties have been sold at auction for as little as fifty dollars, because usually, the cost of a property with back taxes at auction is just the amount of back taxes owed (if you’re the only bidder). But the buyer of that $50 property didn’t necessarily get a good deal.
When it comes to investing in real estate back taxes, the right question to be asking is “how can I get a quality property for as little as possible?” In the current economy, all types of properties – even ritzy ones in expensive neighborhoods – are being foreclosed on for unpaid taxes. In order to get a good deal, one that is profitable and that you can afford, you’ll need to strike the right balance between total dump (like the one that sold for $50) and a palace, which could have taxes and liens as well as a mortgage that could get you in a lot of trouble to take on.
The best properties for the average or even beginning investor are ones that don’t owe a ton of real estate back taxes and that are in a neighborhood that people will want to live in. That will ensure your property is appealing to both buyers and investors, which will allow you to quickly flip the property if you don’t want to keep it or rent it out yourself.