Many investors enjoy purchasing tax liens and collecting the higher than normal interest rates. Investors also enjoy the possibility that the property owner might not redeem the property which means, in many states, that the investor becomes the owner of the property by foreclosing on the first position tax lien. In most states, tax liens are in first position even if there is a first mortgage or deed of trust currently on the property.
Florida: Maximum Rate 18% (1.5% per month, with a guaranteed 5% return regardless of time held)
Arizona: Maxiumum Rate 16%
Iowa: Guaranteed 2% per motnh (or 24% annual return)