All Forum Posts by: Angel Wu

Thanks for your response Ali. Question regarding property tax…. The properties I've been analyzing all currently have very low property taxes (~1200/yr). When I use that property tax amount in my analysis the COC is very high. However my concern is that once the property is sold it can be reassessed either right away or at any point in the future. Once it is reassessed it can go up to 2% of the purchase price as worst case scenario in the market I'm analyzing. As an investor don't I have to account for a worst case scenario which would mean property tax of ~7000/ year? When that happens that would effectively eat up all the earnings and put me in negative cash flow right away. So does this mean investors just buy and hope that that reassessment doesn't happen or isn't that high and when/if it does go up to worst case scenario 2%*purchase price they quickly sell? I've read of other's experiences with this on the forum and some say they've gotten lawyers and professionals to help fight the property tax increases with no success so they are just stuck with negative cash flow properties. Given this type of risk I'm thinking why would anyone invest!? There must me some strategy or way of thinking that I'm missing!!

Anyone know of any markets with CoC of at least 8% without having to rehab? Is that even possible with today's interest rates? I'm new to this so need your input. I identified a hot market (Columbus OH) and analyzed many SFH/duplexes on and off market and found that the CoCs I'm getting are negative (A/B) to at best 2-3% (B-/C). One thing that is difficult to account for in my analysis is the actual property tax. My realtor has told me that the property taxes are based on assessed prices and that the county reassesses every 6 years, but that the worst case scenario would be 2% of purchase price if they reassess upon sale so 2% is what I've used in my calculations. The rest of the expense, I went with standard numbers/what my realtor suggested for the area. I can't imagine investors are investing for this type of CoC so does this mean they are only buying for appreciation? I get rehabbing to unlock value is crucial in REI success, but as a first timer and out of state I'm just not up for that yet. With all of that being said, if I'm not up for buying for appreciation and not up for rehabbing, then I should probably hold off on buying now, right?

I'll DM you!

I have a SFH rental here in LA I've been managing myself for 4 years. Unfortunately I'm priced out of the current market so need to explore out of state investments. Managing has definitely been a pain in the butt and finding a trusted manager at a distance definitely is not going to be easy. I am hoping to build connections and go from there. Any unique tips on finding a good PM would be appreciated.

 Thanks for the support Nathan! I’m going to DM you :)

 Thank you for sharing. I definitely feel a tiiiiiny bit more knowledgeable now! Would love referrals to your 4 if you’re willing to share!

Hi everyone! Newbie investor here living in LA looking to invest out of state. As a newbie out of state investor would you guys recommend I work with a turnkey company? If so, any suggestions on how to find a vetted one in the area (thinking Cleveland, Columbus, Birmingham)? Is just working with a local investor real estate agent and management company a pretty safe bet too? I am just starting out in the out of state arena so don't want to bite off something I can't handle and/or run into too many blindspots. Thanks for everyone's advise and expertise : )

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