All Forum Posts by: Ben Elliott

Referencing this thread for learning more about 401k loans. Thanks everyone for contributing.

Was about to post this same question but using the search function found this topic. 

Would Any one else like to weigh in on what option they use (Cash value or Replacement) and why?

Thank you,

Wanted to +1 this post. I had this same question. However, I am glad I used the search option instead.

Thanks again for asking this question so others can reference.

Hello and thank you @Rolanda Eldridge. I had their number but was hoping I could circumvent contacting them directly. Sounds like I better give them a call. Thanks again.

Thank you @Marcia Maynard for pointing me in the right direction. Since I am new, I was not sure if rentals would have any specific property tax considerations vs. some other type of investment property classification. Appreciate the help though. 

I did call the county tax assessor for my area and received very helpful criteria for property tax. For those that live in my area, I thought I would give back and post what I found.

(annual property tax rates)

1% tax on property assessed value: Used as primary residence

2% tax on property assessed value: Investment property

3% tax on property assessed value: If the property is unlivable, has more than an acre of land. Has additional auxiliary buildings (detached pole barn, additional garage). Also, if the property is ran as a business, it will be taxed at this rate.

So for a $150,000 property, I would be looking at around $3,000 if I was taxed in the 2% range.

Take care all! 

Hello All,

    Does any one know how to calculate the property tax for rental property? I am using the county assessor's site to look up properties, but I am aware that the taxes for an investment property are going to be higher then someone using them as a primary residency, correct?

     Here is an example of what I am seeing:

Any help on being able to nail down an accurate number for calculating rental property taxes would be appreciated.

I have not started my real estate journey yet but am planning to begin 11/2017 (Almost there!). I am also running into a shortage of MFR relative to other cities. However, this is forcing me to think creatively. Here are a few ideas that I got from networking, listening to podcasts and other forms of RE Education.

1. Are there multi-family rentals that are not visible on the market? I was able to drive around and found a few concentrated areas of MFR near a college section. I plan on talking to some of the land lords and gauging if they are looking to off load their MFRs in the future.

2. Are there ways to be creative in zoning? I have recently enjoyed learning more about zoning. Looking at the different parcels, I have found some homes advertised as multi-family that are zoned as single families. conversely, I have also heard of opportunities where some Single family zoned houses have special zoning that allow an additional dwelling. From what I understand, this would allow someone to turn a garage, basement, etc into a livable space. This has me asking the question, "What would be the additional cost to add another door and does those numbers make sense with the SFR house price?" . In addition to the zoning that is in place, I have heard there is a process to change zoning. Don't know all the details, but excited to figure out that piece of the puzzle. This could allow additional opportunities for MFR in an initial SFR purchase.

3. Instead of thinking per door, possibly looking at splitting a house per room. This seems to make more sense in a college type setting but another opportunity to increase cash flow from a SFR situation.

Keep sharing your progress. I am personally interested to see how your journey turns out.

Hello Brent!

Welcome. Having lived in Indianapolis for 25 Years, I think it is a great city. Alot going on in Indianapolis. Interwoven college towns, Ikea being built on the north side and businesses coming to offer jobs. I am still learning REI myself but from a consumer level, Indianapolis is a great place to be.