Bidding Smart: Navigating Tax Sales in Armstrong County Texas

Investing in tax-delinquent property can be a smart way to make money while helping local governments get unpaid taxes. In Armstrong County, Texas, they sell these properties through a process called a redeemable tax deed system. This means if someone doesn’t pay their property taxes, the county can auction off their property.

In this article, you’ll learn how these tax sales work in Armstrong County. We’ll also cover important details like when the auctions happen and how the process goes. Plus, we’ll talk about why investing in this rural area could be a good choice. All the facts have been checked to make sure they’re right.

Armstrong County’s tax deed system

In Texas, if someone doesn’t pay their property taxes, the county sells redeemable tax deeds, not tax lien certificates. The county takes the owner to court and then sells the property at auction. The winning bidder gets the deed but can’t move in right away. The former owner can still pay their taxes and a penalty to get their property back. If they do, the bidder gets their money back plus the penalty. If not, the new owner gets full ownership.

Key facts about Armstrong County’s tax sale

Armstrong County’s Unique Features for Investors

Armstrong County is in the Texas Panhandle. It has wide open fields and part of Palo Duro Canyon. The land is good for growing crops like wheat and cotton. Cattle ranching is also a big part of life here. The town has a small population, with about 1,800 people living there in 2025. Homes are cheaper than most places in Texas, which makes it easier to find a good deal and less competition. Claude is the county seat. This small town has a lot of history and connections to old movies.

Fun Facts

• Ranching heritage: Charles Goodnight and John Adair built the huge JA Ranch here in the 1870s.
  
• Palo Duro Canyon: The eastern edge of America’s second-largest canyon lies in the county.
  
• Population: Peaked at 3,329 in 1930, now about 1,782.
  
• Film history: Movies like Hud (1963) were shot in Claude.
  

Attractions, Economy & Lifestyle

• Attractions: Palo Duro Canyon State Park, the Goodnight Ranch site, and local museums.
  
• Transport: U.S. Highway 287 links Claude to Amarillo (30 miles west). The nearest major airport is in Amarillo.
  
• Economy: Agriculture leads, with cattle, wheat, cotton, and sorghum. Wind farms and tourism add diversity.
  
• Lifestyle: Quiet rural living, outdoor recreation, rodeos, and strong community ties.
  

Why Armstrong County Appeals to Tax Deed Investors

Armstrong County is a great place for buying cheap land and making good money. The town has under 2,000 people, so there are fewer bidders at auctions. This means you have a better chance of winning with the lowest bid, which is just the taxes owed. 

In Texas, if you buy a home or farm, you get extra money back if the owner wants to buy it back. They must pay you 25% more in the first year and 50% more in the second year. 

Homes in the area usually cost about $67,400, which is lower than most places. Many lots have land too, so you can sell them or rent them out after the waiting time is over. Plus, Texas doesn’t have a state income tax, which helps you keep more of your money.

Auction Process in Armstrong County

• Property list: Posted on the county website, at the courthouse, and in local newspapers. Contact the County & District Clerk or Tax Assessor-Collector for the latest updates.
  
• Due diligence: Inspect parcels, check zoning, liens, and condition. Properties are sold as-is. Title and environmental checks are essential.
  
• Registration: Bring government ID and a Statement of No Delinquent Taxes. Registration usually opens 30 minutes before the sale.
  
• Auction: Held the first Tuesday of each month at 10 AM on the courthouse steps. Bidding starts at delinquent taxes plus costs. Highest cash bid wins; payment is due immediately, typically by cashier’s check.
  
• Deed and redemption: Buyers receive a Sheriff’s Deed. Former owners have six months—or two years for homestead/ag parcels—to redeem. If redeemed, investors get their bid back plus the statutory premium. If not, the deed becomes final.

Returns in Practice

Returns are easy to understand. When you buy something for $10,000, if you sell it within six months, you get back $12,500. If you wait and sell it in the second year, you’ll get $15,000. If some items don’t sell, they can be sold again later or offered at a different time.

Open to All Investors

Texas is open to buyers from the U.S. and other countries. If someone from another country wants to buy property, they need to sign up with the county, just like everyone else. They must also use U.S. money for their purchases. Some people decide to start an LLC or get an ITIN. This makes it easier for them to handle their deals and keep track of taxes.

Importance of due diligence

Due diligence means thoroughly researching each parcel before bidding. Steps include:

• Property inspection: Drive by the property to assess its condition, neighborhood and accessibility. Verify that improvements (houses, barns) actually exist and are in usable condition.
  
• Title search: Check for other liens such as mortgages, IRS liens or HOA assessments. Tax deeds in Texas do not wipe out all junior liens; some liens may survive the sale.
  
• Zoning and land use: Confirm allowable uses. Agricultural or homestead exemptions may impact the redemption period.
  
• Environmental hazards: Investigate whether the property has contamination, flood issues or other costly problems.
  

Skipping due diligence can result in owning property that is landlocked, condemned or encumbered by liens. Because tax deeds are sold “as is” without warranties, investors have no recourse after the sale if surprises arise.

Buying over‑the‑counter (OTC) liens/deeds in Armstrong County

Armstrong County sometimes has properties for sale that didn’t sell at auction. These are called struck-off properties. If you’re interested, you can contact the Tax Assessor-Collector’s office to get a list of these properties and learn how to buy them. 

When you buy these properties over the counter, there’s no bidding. Prices are usually set. However, these properties still have same time limits for payment. It’s important to do your homework before buying one.

Why Armstrong County is a top choice for tax deed investors

• Economic and tax advantages: Texas has no state income tax, and property taxes remain comparatively low. Armstrong County’s agricultural base provides stability while proximity to Amarillo offers growth opportunities.
  
• Real estate market: Low median home values and abundant land make entry costs affordable. Rural properties often include acreage, adding potential for agriculture or eco‑tourism.
  
• Strategic location: U.S. Highway 287 connects the county to major markets, while the scenic Palo Duro Canyon region draws tourists.
  

Conclusion – Investing wisely in Armstrong County

Armstrong County has interesting tax deed sales. They happen on the first Tuesday of every month at 10 AM on the courthouse steps. People can bid for properties and buy them with cash. There’s a waiting time of either six months or two years for the former owners to get their property back. If they do, the investors can earn a bonus of either 25% or 50%. 

To do well in these sales, buyers need to research properties really well. It’s also important to register with the county. Be ready for what to do if the property is taken back or if you get to keep it. Armstrong County offers affordable properties. The area is mostly rural and has nice places to visit. With some effort, it can be a good spot for investors.

Pro tips

• Arrive early: Register before the sale starts to avoid delays.
  
• Bring the right funds: Check with the county about acceptable payment forms (cashier’s check, money order or cash).
  
• Network with locals: Talk to county officials and residents to learn about properties and market conditions.
  
• Plan for repairs: Assume that properties need cleanup or rehabilitation.
  
• Keep good records: Track your purchases, redemption deadlines and expenses for tax reporting.
  

Frequently asked questions about Armstrong County tax deeds

Useful links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

Need a hand?

If you’re interested in Armstrong County’s next auction, start by reviewing county notices. Check our Auction Calendar to explore what’s coming up. Then use our free resources to build a smart approach. If you want additional guidance, book a call and we’ll walk you through it.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

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