Blog - DealMachine for Real Estate Investing

Free and Clear Properties by State: 7.3M in Texas Alone (2026)

Written by David Lecko | May 22, 2026 2:45:00 PM

Texas has 7.3 million residential properties with no mortgage attached, no lien, and no lender involved. That is the largest pool of debt-free, negotiation-ready sellers in the country. While equity-rich homes are valuable, the real opportunity could be properties with no mortgage at all.

What Free and Clear Means for Wholesalers

A free and clear property is one where the owner has paid off the mortgage entirely or never had one. The owner holds 100% equity, which means they can accept a below-market offer and still walk away satisfied. Three types of sellers show up most often:

  • Tired landlords who have owned rentals for decades and want out. These are some of the most common motivated sellers in the market.
  • Downsizing seniors who paid off their home years ago and are ready to move closer to family.
  • Life-event sellers dealing with divorce, inheritance, or a job relocation who need speed over top dollar.

The 15 States With the Most Free and Clear Inventory

We pulled this data directly from the DealMachine nationwide parcel database on May 15, 2026. These are live counts of residential properties where no mortgage is recorded against the title.

Rank State Free and Clear Properties Free and Clear + Absentee Owner Free and Clear + Senior Owner
1 Texas 7,287,024 4,531,940 2,342,733
2 Florida 4,753,187 3,030,412 1,888,434
3 California 3,810,719 2,247,217 1,671,435
4 New York 3,474,598 -- --
5 North Carolina 3,107,811 2,261,635 1,201,166
6 Pennsylvania 2,986,235 1,625,221 --
7 Michigan 2,968,663 -- --
8 Illinois 2,871,683 -- --
9 Ohio 2,757,713 -- 964,951
10 Georgia 2,513,753 -- --
11 Alabama 2,195,083 -- --
12 Indiana 2,012,793 -- --
13 South Carolina 1,919,458 -- --
14 Tennessee 1,906,682 -- --
15 Missouri 1,891,998 -- --

The top three states alone account for over 15.8 million free and clear properties. Texas leads by a wide margin, nearly doubling Florida's count. Sun Belt states rank high due to decades of population growth and equity appreciation. Rust Belt states like Michigan, Ohio, and Indiana rank high for a different reason: long-term ownership at low original purchase prices.

The Sweet Spot: Free and Clear Plus Absentee Owner

When you stack free and clear with absentee owner status, you find sellers who own a property outright but do not live in it. Possibly no emotional attachment, no loan payment forcing them to hold, and they are often paying taxes and maintenance on a property they rarely see.

In Texas alone, 4,531,940 free and clear properties are also absentee-owned. Florida has 3,030,412. North Carolina has 2,261,635. These are real property records you can filter, export, and contact today. No other platform publishes these counts. This is the data that turns a cold marketing list into a warm one.

The Senior Owner Overlap

Texas has 2.3 million free and clear properties owned by seniors. Florida has 1.9 million. This points to the largest generational transfer of real estate wealth in U.S. history. Investors who build relationships with these equity-rich homeowners by state now will be first in line when they are ready to sell. You can also pair this strategy with driving for dollars to identify properties in person.

How to Pull These Lists in DealMachine

  1. Open List Builder and select your target state, county, or zip code.
  2. Apply the Free and Clear filter through Quick Filters. This removes every property with a recorded mortgage.
  3. Stack the Absentee Owner filter to narrow to the sweet spot.
  4. Optional: Add Senior Owner for the generational-transfer opportunity.
  5. Export your list if needed.

County assessor records are siloed and often months behind. DealMachine aggregates parcel-level data across all 50 states in real time, so the free and clear houses wholesale leads you pull are current and actionable.

Frequently Asked Questions