All Forum Posts by: Justin Fox

Not sure if you saw my previous reply on your first post or not, but:

Don't know if your duplexes are right next to each other or not (2 units each).  For $700.00 I wonder if you could get the county out to install a second metered tap (two metered taps per residence) and actually have the unit's tenant get an actual bill in their own name.

Justin

I would check out the 10 in. Miter Saw at Harbor Freight.   Has good reviews and for little trim work and etc, it should last you a very long time.  I've had the same Central Pneumatic air compressor from there for 15 years.

Budget friendly saw for sure.

Justin

@Stuart Birdsong,

Thanks for the info.  That's what I meant was the county's appraised value of the home.  Just used the wrong term.  Sorry about that.

Thanks again,

Justin

Also, just because you buy strictly less liquid CF properties now, doesn't mean you will want/have to in the future.  You just need to evaluate the potential maintenance well before you purchase.  To me, if you find a great deal, you buy it if possible.  If there are no good deals, you wait.

I know those 4 houses have better gross cashflow, but have you sat down and figured out the hard numbers?  If those 4 houses are in the city limits, you might not be making THAT much more money net.

@Daria B.,

When you say, "Here I would multiple the mileage (24.7431) by 75k to get my taxes...",  what part does mileage play in taxes?

I also had no idea about a mileage rate for counties.  Is that the deductible compensation for travel?

Thanks,

Justin

You can just go to the tax office site for that area and then look at the tax break down for each category (ISD, COUNTY, CITY, DRAINAGE and etc).  When you buy property as an investor, you don't get the Homestead exemption because you are not living there.  You just apply the taxable rate to the fully appraised value of the home instead of the discounted taxable value due to the Homestead exemption (if there is one).

I would always use the local county site instead of any third party one.

There are other exemptions a person can get too, Veteran exemption/discount for example.

Is it located near any tourist areas?  If it's real uppity there?  You could possibly use it as a large family vacation rental.

I would go with the 30.  What you have to remember is that you're not paying the interest on the mortgage, the tenant is.  Yes, the tenant is still paying the higher mortgage on a lower term, but that also affects your bottom line in the present.  Also, like @George Hermann said, it will lower your carrying costs when you have vacancies.  

 Exactly.  The only losers are the tenants who will inevitably have their rents raised to compensate the landlord for the hike.

 Is there a difference in the foreclosure/tax deed auctions you're talking about and tax sales?  I see properties in the county's list, but their tax sale dates are not strictly on Tuesdays.