Best Counties for Tax Lien Investing: Reddit-Approved Counties That Actually Produce Returns

What Makes a County Good for Tax Liens

The best counties have low bidder turnout, clear online processes, high redemption rates, and reasonable property values. Avoid major metropolitan counties where professional investors dominate. Target midsize counties where individual investors can compete.

Texas Counties That Deliver

Cameron County near the Mexico border has low competition and consistent redemption rates on the flat 25% premium structure that applies statewide. El Paso County has a similar demographic with even fewer bidders. Hidalgo County is growing fast with plenty of properties available. I own properties in all three.

Arizona and Other States

Maricopa County Arizona runs a clean online auction accessible from anywhere. Pima County around Tucson has lower property values but good redemption rates. New Jersey offers high interest rates but a more complex legal process better suited for experienced investors.

Marcus Field: My County Selection Strategy

I target counties with populations between 100,000 and 500,000. Big enough to have a reasonable number of delinquent properties, small enough to avoid professional investor competition. I research each county for three months before buying my first certificate there.

Not all counties are created equal for tax lien investing. After researching and investing in dozens of counties across multiple states, I have developed a clear picture of what makes a county attractive and which ones consistently deliver returns.

The best counties share several characteristics. They have low bidder turnout, which means you can win certificates at or near the minimum bid. They have clear, published auction procedures and online delinquent lists. They have high redemption rates, meaning most owners pay their taxes and you get your money back with interest. And they have reasonable property values that make foreclosure a viable option if needed.

Cameron County Texas is my top recommendation for beginners. The county publishes an excellent delinquent list three weeks before each auction. Bidder turnout is consistently low because the county is far from major population centers. I have won properties at the judgment amount at nearly every auction I have attended there. Remember, this is a redeemable deed, not a certificate: if the owner redeems, you get a flat 25% premium on what you paid, not a rate applied to a $2,500 baseline.

El Paso County Texas is another strong option. The process is similar to Cameron County but with even fewer bidders. The property values are solid and the redemption rate is above 95%. I own several properties there and have never had an issue.

Maricopa County Arizona offers a modern online auction system that lets you bid from anywhere. The county publishes excellent data and the legal process is investor-friendly. The three-year redemption period gives owners plenty of time to pay, which keeps redemption rates high.

Pima County Arizona around Tucson has lower property values but less competition. This is a good county for investors who want to start small.

The counties I avoid are major metropolitan counties like Harris County Texas Houston, Dallas County Texas, and Maricopa County for deed sales. These counties attract professional investors with deep pockets who drive up prices. As a small investor, you will struggle to compete.

Frequently Asked Questions

Common questions about counties.