Distressed Owner/Bankruptcy?/Major Taxes Owed

[Bara Nwokoma]

Hello All!

I hope all is well. Let me get straight to the point.

I had an owner contact me via my direct mail.  He owns a house which he hasn't paid taxes on since 1995, the house has not been to auction, and I was told by the Dallas County Tax Office that there is a lawsuit against him from a lawfirm that handles most Tax Delinquent Cases.

Additional Info:

Taxes owed: 89k! No this is not a typo. The owner claims he received a letter from the tax office saying " If he paid his taxes now they would reduce the taxes owed by 50%" I have never heard of such a thing and I have not seen the letter he speaks of.

Labor Lien: 3.5k

Is this even worth pursuing further? 

[Hattie Dizmond]

@Bara Nwokoma

Whether it's worth pursuing is going to be completely determined by the ARV of the property, where it's located and what the rehab costs are.

As an example...let's say this property has an ARV of $200k and needs an incredibly modest $20k in rehab. Now, let's assume his letter is real, and the taxes can be reduced to $45k. You could pay the back taxes and liens, as part of the purchase, and give the seller $20k in walking away money and still be $51k below the 70% rule target purchase price of $120k.

So, heck yeah, it could be worth pursuing.