Which property data type delivers the best ROI for your real estate investing strategy?

Real estate investors have access to four primary types of distressed property data: tax delinquent, probate, pre-foreclosure, and code violations. Each data type represents motivated sellers facing different circumstances, requiring distinct outreach strategies and offering unique advantages.

This comprehensive guide compares all four property data types across key metrics: motivation level, deal flow consistency, competition, acquisition strategies, and profit potential. By understanding the strengths and limitations of each, you can select the data type that best aligns with your investment goals and market conditions.

Quick Comparison Overview

Data Type	Properties Available	Motivation Level	Competition	Best For
Tax Delinquent	892,156	Very High	Medium	Consistent deal flow, wholesale, tax lien investing
Probate	739,896	High	Low-Medium	Below-market deals, relationship building, estate sales
Pre-Foreclosure	524,387	Very High	High	Subject-to deals, short sales, quick equity plays
Code Violations	318,942	Medium-High	Low	Value-add opportunities, fix-and-flip, cosmetic repairs

Detailed Data Type Breakdown

Head-to-Head Comparison by Investment Goal

Best for Beginners (Low Capital, Learning Phase)

Winner: Code Violations

• Lower competition than other data types
• Often cosmetic issues (easier to evaluate than structural problems)
• Clear problem definition from violation notices
• Wholesaling opportunities without needing repair capital
• Municipal records provide deal transparency

Best for Wholesalers (Quick Assignment Fees)

Winner: Tax Delinquent (tied with Pre-Foreclosure)

• Large inventory (892K properties) creates constant opportunities
• Clear distress signal makes deals easy to pitch to buyers
• Public record data allows quick verification
• Pre-foreclosure works too (urgent timeline appeals to fix-flip buyers)

Best for Fix-and-Flip Investors

Winner: Code Violations

• Many violations are cosmetic (paint, landscaping, debris removal)
• Lower purchase prices due to problem stigma
• Clear scope of work defined by violation notices
• Fast turnaround on simple violation resolutions (30-90 days)

Best for Buy-and-Hold Investors (Long-Term Rentals)

Winner: Probate

• Often well-maintained properties (occupied until owner's death)
• Less competition means better pricing
• Relationship-based approach reduces bidding wars
• Properties in established neighborhoods with rental demand
• Lower renovation costs = faster rent-ready timeline

Best for Creative Financing (Subject-To, Seller Financing)

Winner: Pre-Foreclosure

• Existing mortgages can be assumed or taken over
• Owners motivated to avoid foreclosure = flexible terms
• Subject-to deals preserve existing low-rate financing
• Short sale negotiations create below-market pricing

Best for Passive Income (Tax Lien Certificates)

Winner: Tax Delinquent

• Only data type offering lien certificate investing
• Secured investment earning 8-36% annually (state-dependent)
• Potential property acquisition if unredeemed
• Passive investment requiring minimal active management

Best for Lowest Competition

Winner: Code Violations

• Smallest property inventory (318K) but least investor awareness
• Many investors avoid "problem properties" perception
• Requires understanding municipal processes (barrier to entry)
• Less marketing saturation = higher response rates

Best for Consistent Deal Flow

Winner: Tax Delinquent

• Largest inventory (892K properties)
• New delinquencies added quarterly as tax deadlines pass
• Recession-resistant (downturns increase delinquencies)
• Available in all markets (every property pays taxes)

Combining Multiple Data Types (The Smart Approach)

The most successful real estate investors don't limit themselves to a single data type. Instead, they combine multiple lists to create a diversified deal pipeline that produces consistent results across market conditions.

Recommended Combinations by Strategy

The "Value-Add Flipper" Stack:

• Code Violations (primary): Cosmetic flips with clear scope of work
• Tax Delinquent (secondary): Quick wholesale opportunities
• Benefit: Steady flip pipeline + wholesale income during market slowdowns

The "Creative Finance" Stack:

• Pre-Foreclosure (primary): Subject-to and seller financing deals
• Probate (secondary): Owner-financed estate sales
• Benefit: Multiple paths to no-money-down acquisitions

The "Rental Portfolio Builder" Stack:

• Probate (primary): Quality properties at below-market prices
• Code Violations (secondary): Value-add rentals after repairs
• Benefit: Consistent rental acquisitions with built-in equity

The "Diversified Wholesaler" Stack:

• All 4 data types: Cast the widest net possible
• Benefit: Something for every buyer (fix-flip, rental, subject-to, tax lien)
• Deal flow: Recession-proof pipeline across multiple distress categories

Market Conditions and Data Type Selection

Rising Market (Appreciating Prices, Low Inventory)

Best choices: Probate, Code Violations

• Lower competition than foreclosure-focused investors
• Probate heirs more focused on quick sale than maximum price
• Code violation owners facing penalties regardless of market
• Avoid: Pre-foreclosure (high competition, bidding wars common)

Declining Market (Falling Prices, High Inventory)

Best choices: Tax Delinquent, Pre-Foreclosure

• Economic distress increases delinquencies and foreclosures
• More motivated sellers as property values drop
• Less competition as investor demand declines
• Creative finance opportunities as sellers desperate to exit

Stable Market (Moderate Growth, Balanced Inventory)

Best choice: All 4 data types (diversification)

• Balanced approach captures opportunities across categories
• No single distress signal dominates the market
• Portfolio approach reduces risk from market shifts

Data Quality and Freshness Comparison

Data Type	Update Frequency	Data Source	Verification Level
Tax Delinquent	Weekly	County tax collectors	High (public record)
Probate	Weekly	Probate court filings	Very High (court verified)
Pre-Foreclosure	Weekly	County recorder, court filings	Very High (legal filing)
Code Violations	Weekly	Municipal code enforcement	High (official notice)

Key Insight: All four data types at TaxLatesData are updated weekly from official government sources, ensuring you always have the freshest leads before competitors.

Cost Per Lead Analysis

TaxLatesData offers consistent pricing across all data types:

• Single county: $667 for complete access to all properties in that county
• Two counties: $997 for both counties (25% discount)
• Custom packages: Contact for multi-county enterprise pricing

Cost Per Lead Breakdown

Example: Major metropolitan county

• Tax Delinquent: ~$0.75 per lead (assuming 892 properties)
• Probate: ~$0.90 per lead (assuming 740 properties)
• Pre-Foreclosure: ~$1.27 per lead (assuming 524 properties)
• Code Violations: ~$2.09 per lead (assuming 319 properties)

Industry comparison: Most lead vendors charge $1-$5 per lead for lower-quality, outdated data. TaxLatesData offers verified, fresh data at significantly lower cost per lead.

Getting Started: Action Plan by Experience Level

If You're Brand New (First 6 Months)

1. Start with ONE data type: Code Violations (lowest competition, clearest problem)
2. Master the process: Research, outreach, negotiation, deal analysis
3. Complete 3-5 deals: Wholesale or assign to experienced investors
4. Expand to second type: Add Tax Delinquent for increased deal flow

If You Have Some Experience (6-24 Months)

1. Primary focus: Choose based on your strategy (flip = Code Violations, rental = Probate)
2. Add complementary type: Diversify with second data type for backup pipeline
3. Build systems: Create marketing campaigns and follow-up sequences for each
4. Track metrics: Measure conversion rates by data type to optimize ROI

If You're Experienced (2+ Years)

1. Access all 4 data types: Maximize deal flow across all categories
2. Segment by strategy: Different outreach for each data type
3. Hire team members: Assign VAs to specialize in specific data types
4. Build buyer network: Match data types to buyer preferences

Final Recommendations

For Maximum Deal Flow: Tax Delinquent (892K properties, consistent pipeline)

For Lowest Competition: Code Violations (318K properties, fewest investors)

For Best Relationships: Probate (relationship-based, repeat referrals)

For Creative Deals: Pre-Foreclosure (subject-to, seller financing)

For Diversification: All 4 types (recession-proof, multiple exit strategies)

The best data type depends on your investment strategy, local market conditions, available capital, and experience level. Most successful investors eventually use multiple data types to build a diversified, recession-resistant deal pipeline.