All Forum Posts by: Jaron Walling

Question: I'm building out the pro forma for a theoretical investment property. I'm struggling to estimate the increase or decrease in property taxes each year. The neighborhood rate is at 2.74% (2018). What method would you use to find historical rates or predict the future property tax?

Thanks 

I've never been a morning person but the last 2 years changed that. My previous job required me to work 6:30 and currently at 7am. It's unbelievable how much stuff you can get accomplished in the afternoon when other people are stuck in rush hour traffic! I've started reading books; picked up 3 that a lot people mention on the Bigger Pockets podcasts. I also have time for a part time job and to research local property. 

Best to lock down a great deal before cashing out. Paying those taxes will hurt. On the other hand it's why real estate is great because business expenses, and depreciation limit the tax liability every year.

You have some great options! Before starting the 1031 exchange process what other properties have you looked at? It's important start looking now since because of the 180 days time limit. The capital gains tax is lower yes. It should be in the 20-30% range. 

Look for creative ways to find off market deals (drive for dollars, mailings, cold calls, etc) and bring CASH. At the minimum get pre-approved (for x $$) through your lender to streamline the negotiation process. 

I'm in the same camp because I don't have enough for an all cash offer. 

Congrats on finding property here!

Did you visit and walk the property? Do you have any contingencies like pending inspection, etc? After the inspection gets completed I would reach out to the PM company and discuss how they screen tenants. That would be very valuable information.

@John Thedford Can you expand on the $4k rebate you got for the roof? Was it in bad shape from a storm or something? 

Thanks

I am local and grew up in Indiana. Really appreciate all information and opinions you guys provided. My goal as an investor is to BRRRR and hold my properties for at least 15 years.

@Wayne Brooks Thank you for expanding on the sale price. In this market an investor could pick up 3 "rent ready properties".. and fall into the trap that hurt people. 

Would you buy a car without test driving it? Would buy a house without walking it and doing a proper inspection? The answer is pretty clear. 

As newbie to the world of real estate I can't fathom people investing in properties without ever seeing it in person. Having in person conversation about valve (or rehab cost) is massive.   

I don't know what your yearly income is but Brooklyn, New York is crazy expensive. My friend lives there and makes about $100K per year. He survives but only because he sold his Audi, and lives with another person. 

Looking out of state is another great option. If you have friends or family nearby (to future property) they could help you manage it :-) 

Having a small team to manage the property(s) can never hurt you.