All Forum Posts by: Jay Jasunas

I have, but too much big money funds are bidding everything up and returns have gone way down. So I have moved onto other avenues. Most of the time the owner or lien holders will pay off the tax lien before any tax foreclosure sale.

@Kyle Fitzpatrick If the property goes to tax sale, the mortgage holders lose out on all monies owed to them.

The tax liens are super liens which go in front of mortgages in line of payment.

The bigger issue is your return on investment and making sure you are not buying liens on worthless property.

Yep, just get a nice big umbrella policy and sleep well at night. Save yourself a lot of hassle and expenses.

@Joseph Key Your gain in the sale would be your sale price $200K less your basis (purchase + improvements - depreciation). So your basis would be around 110K with a gain of $90K.

You can defer your gain with a 1031 exchange, but need to purchase a property for at least $200k, not less but can be more. You can't take any money or boot from the sale.

@Abhishek Ramanan Yes it does if you are certain you can attain the returns. But an appreciation play in Ashburn or Sterling Ranch (Loudoun county) if far from guaranteed. I lived there for six years and saw no appreciation or rental increases. 

It is a very transient area with people always moving in and out for goverment or contracting jobs. Which would seem like an ideal rental market, but the rents just don't justify it. Not exactly sure why they are not higher. You are bearing the brunt of high taxes and a high association fee. 

@Ryan Keenan Sure it is, it is just going to cost you some money in the form of a high interest rate on the personal line. It will also affect your DTI for future loans.

@Abhishek Ramanan  No way I would buy a new rental property that is going to cash flow negative. Most of the appreciation plays my friends do on the west coast or here in Denver put more money down to avoid the negative cash flow. 

Rent of $2600 on a $525k townhouse seems like a bad deal for the landlord and a great deal for the renter.

Don't spend money just to get a tax deduction. Expenses are what they are, just be glad you are making money.

I do the same thing, google voice number while advertising, but my real cell number after the lease is signed. It worked out fine for me. 

@Gary Dezoysa Also you will be paying servicing fees every month on every note you own that is boarded with a servicing company. The cheapest is around $25/month significantly cutting into your monthly yield on such a small note.