All Forum Posts by: Josh W.

I’m looking at a McKinney TX property that was built in 78 and sold for cash in 2018. The tax assessment is at 75k and did not reset when it was sold in 2018 for 200k. He put a lot of work into it, I am looking at purchasing for 300k. If I purchase cash he says the deed of record only says “purchased for 10$“ and it will not set off a flag for a reassessment.

Does anyone have experience here?  If I finance 150k and record the deed for a 150k sale, would it set up a reassessment?

I’m also looking to add a 150k garage/out building addition. Would financing this addition change the valuation?  

The 1k/year tax bill is very appealing and I wouldn’t mind buying in cash to keep this benefit. 

Thank you.

[quoteI like the way you think. How motivated do you think she is?

I'm not sure. I asked her about the neighborhood and she said it was going down hill because there are a bunch of renters there. All of her old friends have moved out. She was upset about cars parking in the street and crazy cat lady next door and went on and on about how she wanted to sue and fix her driveway so she could sell. Her son lives in the town home next door and he wants to move as well. The neighborhood is an A, the young hip crowd loves it and it would be easy to rent for the right price.

I'm not putting much stock in it, but the way she is downplaying her own home it may be worth it to check. It would be nice to get all 3 right in a row but the foreclosure is a reverse mortgage and they are firm on the price. Some people are just angry at the world and she was one of them. It would be an awful landlord situation to have her as an adjoining neighbor. Maybe I can knock her down 10k for the shabby driveway, we'll see.

I just found this from a more recent case.

The Virginia Supreme Court, in a 4-3 decision June 7, 2012, held that the only duty a property owner owes to other property owners is to not make things worse than the natural situation.

Interesting article. The tree (line of trees) has been there much longer than the house. It would be an interesting case to see if I was liable for damage caused years before I bought the house. It would be an especially tough lawsuit if the tree was cut down immediately after moving in. I don't think the city would allow it though, because of the area backing onto wetlands. I guess she can sue the city too.

I thought it was an interesting "Welcome to the neighborhood" speech more than anything.

She said she was selling her house soon and no one would buy it with that crack in the driveway. I said I would buy it and asked for her number if she was looking to sell. She didn't really know what to say. I think I called her bluff, but I may go back over there to see if she was serious on the sale. I love the area but the numbers just won't work on that particular place.

In the end, no one is going to win but the lawyers.

So I get out of the car to look at an investment property this morning and before I can make it into the house the neighbor says "Just so you know, I'm going to sue whoever buys this property. I just wanted to let you know in case you buy it."

I entertain her for a little while and ask why. She says one of the trees on the property has a root which is pushing up her driveway. The old owner was foreclosed on so she contacted the bank and the bank said it was a prior condition and they were not responsible. So she contacted a Lawyer and he said to sue the next owner.

The crack is on a small driveway addition, extra concrete that was added to the driveway to make it a little wider, on a slope about 1/2" thick. There is a root somewhere in the vicinity, but the drive was bound to crack anyways just from the way it was poured.

We are going to pass on the house, crazy cat lady lived there with 32 animals that left a smell so bad my eyes burned, but it got me thinking - if the tree root is the culprit of her driveway woes, does she have a case if the tree is on my yard? What would be my responsibility? In the area, it is doubtful the city would let you cut a tree down, how would this change things?

People amaze me. I want nothing more than foreclosures in disrepair in my neighborhood to be bought and cleaned up. She is content to have it vacant for some odd reason.

Additionally, what is the cost and procedure to clean up cat urine? Does the subfloor need to be removed? It was awful.

With 12k down and a 15 year note I'm estimating ~340/month cash flow after paying mortgage/taxes, insurance, hoa fees. Vacancy and repairs would come from that. I may opt for a 30yr if I can get one.

I looked at two of the units yesterday. One two bedroom 2.5 bath is completely move in ready for 60k short sale, recently renovated, decent fixtures etc. It backs up to some thin trees and then another complex, somewhat close to the main road. The other needs about 5k in work to get it up to the 2 bed unit standards, but it is a 3 bedroom and backs up to a lake. Beautiful view. It is a Short sale at 85k. The selling agents on both did not know the status on assessments. My agent says these are a piece of cake to rent. Currently in the complex there are two up for rent, the one I called on was for a May rental. I'm putting in an offer on both, contingent on assessments.

These were built in 82'. The roof is brand new, I'd estimate the siding at 10-15 years old. It is wood and is showing age on a few of the units but these are good. It will probably be replaced in the next 10 years. I'm curious how much the HOA has in the kitty set aside for the siding but other than that I should easily cover expenses and I'll set the rest aside for future assessments.

"I'm not sure how it works if the previous owner didn't pay a special assessment and it went to foreclosure, "

Can anyone address this? What about regular HOA dues that haven't been paid in the last several months. Is the bank responsible, the previous owner or me?

I know HOA's can foreclose on properties with delinquent dues, what is the process to collect dues of foreclosed properties or properties which have sold but are still past due?

HOA issues aside, how do the numbers look? How much should I try to make to offset the pain of the HOA? The area is awesome, I would have no problem renting there myself. As far as the 15yr note, that is what my bank is offering. Are people getting 30 yr notes for investments with 20% or less down?

I'm still looking for my first rental. About 30 offers so far and none have worked out. I don't know how people are making money with the prices these places are selling for.

I have stayed away from anything with a HOA but this town home has me intrigued. It is in an awesome area and is rental ready. I would have loved to live there a few years ago. I'll probably set aside a few grand for painting the white walls and any unknowns but it looks like it would rent as is. I talked to a few neighbors who pay $1130, have been there for 4 years and absolutely love it.

It is on the market for 60K - previously sold for 170 (as did most others at the peak)
20% down - 12k
Rentals are 1000-1150 for the same type unit.
HOA is 235/mo - lawn and trash included(Complex has brand new roof)
most likely a 15yr mortgage ~4.25%
1100/yr taxes

The HOA is steep but it still looks attractive and would be a piece of cake to rent. Is there anything I am missing here? There are a few foreclosures in the complex from those that bought at the peak, I may try to buy a few if this works out at these prices.

All,

Here are the numbers.

I am purchasing a duplex that is in the middle of construction for 525k in Va. Work on the project stopped 2 years ago when the market crashed. It will take 300k to finish for a total investment of 825k. (This duplex is beachfront 9500sq/ft for the numbers to be so high) I plan to sell my current home and move into one side of the duplex.

My current home was purchased for 400k in December 09 and I put 40k into it. I anticipate selling for 525k. If I sell before December I am shy of the 3 year requirement of the 8k first time homebuyer tax credit.

The other side of the duplex can rent for 3k-3.5k/month or sell for 600k immediately or 700-800k if I take some time. The entire project will be worth 1.2 to 1.5million when complete. This is not our final home and I will probably move after 2 years. When we move we will figure out if renting it out or selling our half is a better option.

How do tax laws work when selling half of a duplex? Do I get crushed in capital gains if I sell half and reinvest that into my side of the property? Can I invest that gain into other properties? Am I better off renting half out for a few years and then selling? Is it a gain if I am not actually taking any money out from the sale, just putting it towards my 825k note to knock down my mortgage?

After the sale of half of the duplex it would cut my mortgage down to 100-200k and leave me money from my salary to make other investments after a year. I would like to sell half immediately to take the risk out of it but I don't want to lose in taxes.

Please point me to the tax code that covers this situation, I am at a loss right now and not sure if renting or selling is the best way to go. This extends us pretty far, it would hurt if it went unrented for a while but the entire property would be positive cash flow if we rented the whole thing out.

Thanks!