Tax Deed Investing has gained significant attention in recent years as more investors explore alternative strategies backed by real estate. While each state operates differently, Texas—where CORE Tax Deeds focuses its strategy—offers a uniquely structured system with monthly auctions across 254 counties. Because properties enter these auctions due to unpaid taxes rather than traditional market factors, many fall into specific categories that historically offer stronger potential for resale value, redevelopment, or redemption.

1. Vacant Residential Lots

Vacant lots are among the most common and accessible assets in tax deed sales. These parcels often appeal to investors because:

• There are no tenant or occupancy issues
  
• Carrying costs are generally low
• They are attractive to local builders once cleared of title issues
• They typically involve fewer unknowns compared to improved properties
  
  

Infill lots—parcels inside established neighborhoods—can also offer community benefit by reducing blight and enabling future housing development.

 

2. Small Acreage Tracts

Small acreage parcels, often located in rural or tertiary counties, appear frequently at auction. These tracts can provide:

• Flexibility for agricultural or recreational use
• Appeal to buyers seeking space outside city limits
• Potential for subdivision depending on county rules
  
  

These property types require careful due diligence, including confirming access, zoning, and any environmental considerations.

 

3. Commercial Parcels

Commercial lots occasionally appear in tax deed auctions, particularly in areas experiencing economic transition. While they may require more research, these parcels can become valuable once tax issues are cleared because:

• Local businesses and developers often seek commercial space
• Vacant commercial land can revitalize unused corridors
• Counties benefit from restoring tax-producing property
  
  

Investors typically evaluate visibility, traffic counts, surrounding businesses, and zoning before acquiring commercial lots at auction.

 

4. Residential Structures Confirmed as Vacant

Some tax deed opportunities include single-family homes or small residential structures. Responsible firms conduct extensive research to ensure:

• The property is fully vacant at the time of acquisition
  
• No residents or vulnerable individuals are affected
• Title, liens, and structural conditions have been evaluated
  
  

In practice, Texas tax deed investors prioritize non-homestead, vacant structures due to the state’s clear redemption rules and lower risk profile. When a property with a structure is confirmed vacant, potential exit strategies—resale, rehabilitation, or wholesale—may be available depending on investor objectives.

 

5. Struck-Off Properties (Post-Auction Opportunities)

Struck-off properties are those not sold during the initial tax deed auction. Counties may offer them for purchase after the sale, often with:

• No redemption period
• Reduced pricing
• Clear opportunities to return unused land to productive use
  
  

These parcels often include vacant land, rural acreage, or abandoned commercial tracts.

Why Property Type Matters in Tax Deed Investing

Selecting the right property types is one of the most important factors in managing risk. Industry best practices typically include:

• Researching all liens and encumbrances
• Occupancy verification
• Physical or proxy inspections
• Market analysis and resale planning
  
  

Organizations like CORE Tax Deeds emphasize non-occupancy standards, community stewardship, and thorough due diligence to help ensure that acquired properties support municipalities, reduce blight, and return unused land to productive use. These safeguards also help prevent displacement—an important consideration in responsible tax deed investing.

Community Impact of Responsible Property Acquisition

When conducted ethically and with proper safeguards, tax deed investing can produce meaningful public benefits:

• Returning delinquent properties to the tax rolls
• Supporting counties, schools, and local jurisdictions
• Addressing blight and vacant land issues
• Reducing administrative burdens on municipalities
• Supporting nonprofits such as the NTLA Foundation, which assists vulnerable homeowners
  
  

CORE Tax Deeds, for example, has documented a 30-year history—through both the fund and founder—of acquiring only vacant properties, with no recorded displacement. Additionally, 2% of fund profits are pledged to support seniors and veterans at risk of losing their homes.

Final Thoughts

While no investment strategy is risk-free, understanding the types of properties that commonly perform well in tax deed investing can help investors make better decisions based on their personal objectives and risk tolerance. Property type, location, condition, and due diligence processes all play a role in determining how a property may perform after purchase or redemption.

For those evaluating the broader tax deed landscape, reviewing educational materials, county resources, and SEC-filed disclosures is a critical part of informed decision-making.