Tax Deed Sale Calculator

Tax deed sales transfer property fee simple to high bidder, often at deep discount.

Fair market value

Winning bid

Quiet title cost

Rehab cost

Carry + closing

Total acquisition cost

$93,000

Estimated profit

$57,000

ROI %

0.6%

How the math works

Total cost = bid + quiet title + rehab + carry. Profit = FMV − total cost.

$60k + $5k + $20k + $8k = $93k cost. FMV $150k. Profit $57k = 61% ROI.

How to Use

Enter fair market value.
Enter winning bid.
Enter quiet title cost.
Enter rehab cost.
Enter carry + closing.
Read total acquisition cost.

Frequently Asked Questions

Tax deed sale economics?

States with tax deed: TX, GA, CA, NC, AR, IL, PA, others. Bidding: starts at lien + back taxes + costs, premium added. Average winning bid: 30–80% of fair market value. Title: fee simple but quiet title action recommended ($2–10k). Risks: title encumbrances, code violations, environmental, occupant evictions. Due diligence essential: drive-by, BPO, encumbrance check, redemption period status. Best ROI: smaller properties, distressed sellers, motivated municipalities.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.