Financing Upgrades Through Property Taxes

[Grant Anderson]

Hi everyone, I am in California and am not sure if this is only in California or not. I have done a few rehabs and recently was approached by another rehabber that wanted to wholesale one of his flips. The numbers were very thin by my estimation. He said that I could get about $30,000 of the rehab costs through a program like ygreen.com, basically if you upgrade Windows, roof, drought tolerant landscaping, and other energy efficient items, you are able to get a loan that is attached to the property taxes for the property. When you sell the property the new owner takes over the payments because it is added to the property taxes. Does other rehabbers do this? It seems like the new homeowner is now on the hook for the rehabb costs without even knowing it. I understand that I can make more money doing this because it reduces my costs but just wasn't sure if it is the right thing to do to the new homeowner. What is everyone else's thoughts on this?