All Forum Posts by: Connor Dunham

@Mike Edwards

Many markets can fit those criteria. You will hear about every city in the Midwest or South that is perfect.  The best is what fits into your why, strategy, time, energy, lifestyle, risk tolerance, and capital. Where do you have resources, where can you travel to, and where do you want a rental? Sometimes it can help to eliminate markets where you don't want to invest. Alaska? maybe not? I'm in the Reno Tahoe, NV area and it works for some investors' goals and not others, it's less expensive than CA, Reno is, not in Tahoe.  My investor clients like the appreciation is higher and low property taxes, and no state income tax and it's close. Can you buy a house for 200k and cashflow 2000 per month? Not likely. Is it the best market for some yes? Others no. @Becca F. has good insights on both CA and the Midwest. 

It's good to get ideas here on BP, and a great place to get people who have invested in the area you're considering.  

Brad

I tend to like to invest where there are jobs and where people are moving to

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Ranked: Population Changes in U.S. States

A demographic reshuffling is taking place across the U.S., with states in the Northeast and the West seeing shrinking populations. Texas added nearly half a million people, a 1.5% gain, or three times the national average.

States without personal income tax typically have higher property, sales, gas, etc. taxes. For example Florida, New Hampshire and Texas all have no personal income tax (although NH taxes dividends) but check out their property taxes. They've got to make up that difference somewhere. You'll also lose some of your tax deductions that real estate investors benefit from. Also some of the states with no income tax are among the least affordable states to live in overall (like Alaska) or the have the highest overall tax rate (like Tennessee). Just food for thought! 

States without personal income tax typically have higher property, sales, gas, etc. taxes. For example Florida, New Hampshire and Texas all have no personal income tax (although NH taxes dividends) but check out their property taxes. They've got to make up that difference somewhere. You'll also lose some of your tax deductions that real estate investors benefit from. Also some of the states with no income tax are among the least affordable states to live in overall (like Alaska) or the have the highest overall tax rate (like Tennessee). Just food for thought! 

Approximately 2 1/2 years ago, I paid off a second and third deed of trust in foreclosure on a property in Alaska. There was still a first mortgage with Wells Fargo. The trustee provided me with a Trustees Deed that said I own it and it is held in the name of my LLC. I contacted the woman who was on the first mortgage and asked for the information monthly regarding principal, interest, escrow, payments, etc. and told her that I would like to take over the loan, as I thought it was possible to do. She was furious that someone had bought it other than her mother. I explained to her that the foreclosure was public knowledge and showed her the Trustees Deed proving that I own the property. She has never cooperated with me and has done everything possible to make it difficult. I contacted Wells Fargo and asked if I could assume the loan or be assigned the loan or something and they said no. I was not a family member, no one had died for me to inherit it, so the answer was no.

Shortly after I bought the property through foreclosure, the Wells Fargo loan was assigned to a servicing company, which I did receive some brief information about from the woman on the loan. I called them frequently to ask about principal, interest, escrows , and of course they refused to give me any information. All I can say is that persistence and the number of Foreclosures happening in Alaska apparently changed the mind of one of the supervisors. I am still not able to assume the loan, but I provided them with all the documents, proving my ownership  and she ( the servicing supervisor.)  agreed to put me on as a “lien interest” in the notes on the mortgage. In theory, this will allow me to call and get all of the information that I need for tax purposes, and to check on the payments that have been made. They will not mail or email me any statements. I will not receive year end statements., But I can at least get loan balances and the pertinent information that I need. I will say that it wasn’t until I asked to speak to a supervisor that I finally got this permission.

My “subject to“ loan is 3 - 3/4 % so I am not interested in doing a refinance now. I believe that part of the reason the supervisor agreed to this was she was able to look back at the time that I have owned it and saw that my payments have been on time every month, and I would imagine they checked my credit, which is quite good. 

My advice to anyone else who might be dealing with a “subject to” transaction is that it’s likely to be very difficult. For this particular piece of property, I would do it again. The woman who is still on the loan lives next door to my property, and for the last 2 1/2 years has pestered my tenants telling them that I “stole“ the property, and that it really wasn’t mine. I’ve asked her to stop doing this, however, she continues to be a nuisance to the tenants. So my answer to that is to prepare new tenants each time, for the likelihood that they will hear this story from her. I assure them that I do own the property and they have nothing to worry about. 

 We could be neighbors if you do :)

Thanks for the insight, Timothy! Let me reach out to you via messages and discuss specific multi-unit options.