Investing in Tax Defaulted Homes: Is It a Positive Endeavor?

Is it wrong to purchase Tax Defaulted Homes, or are you doing the right thing? Let’s discuss the ethics of tax defaulted property investing and who benefits.

Is investing in tax defaulted homes a positive endeavor? In the world of tax defaulted property investments, the dynamics are often misunderstood.

Many people question the ethics behind investing in tax delinquent properties, as it could potentially lead to someone losing their home. However, it’s essential to consider the bigger picture and understand the impact that abandoned and tax defaulted properties have on communities and how investors can play a crucial role in revitalizing these areas.

Across the United States, there are countless abandoned properties in various states of disrepair that contribute to neighborhood decline. These tax defaulted homes, left behind by their previous owners, not only put a strain on taxpayers but also create blighted areas rife with crime and decay. By investing in and rehabilitating these properties, investors contribute positively to the community, create employment opportunities, and help to put these tax defaulted homes back onto the tax rolls.

Key Takeaways

  • Investing in tax defaulted properties can bring positive change to communities.
  • Abandoned and tax defaulted properties contribute to neighborhood decline and increased tax burdens.
  • Investors who rehabilitate tax defaulted homes aid in community revitalization and job creation.

Ethical Considerations of Tax Defaulted Property Investing

the ethics of buying tax defaulted homes

As a tax defaulted property investor, you might question the ethical implications of taking over someone’s property. It’s essential to understand that buying tax defaulted properties is not about kicking people out of their homes. Instead, it aims to restore abandoned properties, support local communities, and contribute to the real estate market.

The Struggle of Counties with Blighted Properties and Their Effect on Communities

Counties throughout the U.S. face challenges in dealing with abandoned and blighted properties that negatively impact neighborhoods. When property owners neglect their tax obligations, they cease contributing to the maintenance of essential public services such as schools, police, and fire departments. Consequently, the county’s treasurer and tax collector must confiscate and attempt to sell these properties, but the property’s condition may hinder interest from potential buyers.

Rehabilitation and Profitability of Abandoned Properties

profiting from investing in tax defaulted homes

Many abandoned properties can be saved with the right approach and adequate funding. Investors with property rehabilitation skills can purchase tax defaulted homes at low prices and resell them after fixing them up. This process not only generates profit for the investor but also contributes to preserving the character and history of neighborhoods.

Advantages of Investing in Tax Defaulted Properties

By investing in tax defaulted homes, you can achieve several benefits:

  • Restoration and revitalization of abandoned properties.
  • Putting properties back on the tax roll, resulting in local revenue.
  • Helping other investors make profits by buying and reselling properties.
  • Contributing to the community by creating jobs and stimulating economic growth.

Buying and Selling Tax Defaulted Homes

Since you can purchase tax defaulted homes at tax sale auctions for pennies on the dollar, you can turn around and sell them for an attractive discount to property rehabbers and still earn a profit of $25,000, $50,000 or even $100,000, utilizing Ted Thomas’ win-win, buy low, sell low strategy.

When entering the tax defaulted property investment market, be sure to:

  1. Focus on properties with potential value, not junkers beyond repair.
  2. Always look for a margin between your purchase price and the property’s tax-assessed value.
  3. Consider reselling properties to other investors or those interested in fixing and rehabbing them.
  4. Stay informed about local tax lien auctions and other tax delinquent property sale opportunities.
  5. Seek professional advice and follow local regulations and guidelines when investing in tax defaulted homes.

buying and selling tax defaulted homes

In summary, investing in tax defaulted properties can be a rewarding endeavor, offering benefits for both the investor and the community. With due diligence, you can make a positive impact on neighborhoods, support public services, and generate profit from your investments.


As you invest in tax defaulted homes, keep in mind that your actions can have a positive impact on communities. By purchasing these properties, you contribute to cleaning up neighborhoods and putting the real estate back onto the tax rolls to provide support for vital community services. While not all properties can be saved, your investment in those that can be refurbished or repurposed helps others as well as yourself.

Remember to stay selective in your investments, and focus on tax defaulted homes with the potential for a good return. Use your skills and determination to turn these properties around and bring a new life to the area. As you participate in this investment process, your actions can lead to benefits for both yourself and the communities where these properties are located.

If you’d like to know more about tax lien and tax deed investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, personal coaching with certified coaches, and an interactive map and auction calendar research tool that allows you to visit each county online to find the details about upcoming auctions.

Want to earn massive income from bargain real estate investing? Would you like to buy mortgage-free properties for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then get started today with this Free Gift.


Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

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