All Forum Posts by: Lance Trezona

BP CON for sure

@Dan H. Thank you for the info. 

Good Morning @Daniela R. Congrats on saving up for the down and closing cost. What market are you looking to buy in and what is your investment strategy? Are you looking to House hack this property?

 As for the crash, I am not too sure the market will be crashing in the way you are thinking. You will not see the market crash as it did back in 07-08, you might see some price stabilization but nothing too drastic. As @Wyatt Franta said, "You should have a fixed-rate loan, and your payments/obligations remain the same. You only lose/make money when you sell." The market will always rise back up that's why Real Estate is such a great place to invest your money. Also, @Rick Pozos gave some solid advice too, it's also about value add. Does the property have the potential to be worth more after you give it some love? I know it seems scary to put all the money you have saved into a property, and you want to get it for the absolute best price possible! But, in reality, you could be waiting for a long time and never get in at the price you are looking to purchase the property for at the moment. It's better to get in the game than sit on the bench and not play. 

   You should be able to find out what your state taxes are by a quick google search. Your taxes will be based on the purchase price of the house. So if you bought a house for 225K and your state taxes are 1% your Property tax would roughly be 2,250.00. That is considered the Baseline tax, you will have to see what your state annual tax increase is. In CA annual assessments are limited to 2% or the rate of inflation (whichever is lower).

Hope this was helpful. Keep us posted.

@Jordan Graham congrats on the purchase. Would love to know the numbers once you move out and rent the property to tenants. @Dan H. I did not know that, but you can rent it out if there is no separate unit number, even if it's not owner-occupied?

@Marek Los I see what you are saying, the owner before you picked up the place for 52,500 from the previous owners who bought it for 140,000 and then did the rehab and sold it to you last year. Not too sure about the state of NJ, but here in California, I know that I wouldn't be able to change it because it's based on the sale price. Hell man, if you fight it and win it was worth it, if you fight it and don't win, you learned a lot about the process and know more than you did if you didn't. 

As for the escrow, that should change once all the info has been obtained from the Tax assessor's office. If it's been a while since the info has been updated, I'd call your mortgage company and find out why they haven't made the correction.

Let me know how it goes.

Hi @Marek Los, sometimes it is the tax assessors department that is lagging after the purchase of your property. Usually, your property tax will be assessed after the purchase, and it will be based on the selling price when you bought it, (a quick google search shows that in your state it's 2.42%) then you will see your increase.  I am not sure if it's the pandemic or something else, but it seems like all Assessors are behind, I have not gotten by new property tax yet, but know that I will have a supplemental tax bill next year because my Mortgage company has based my taxes off of old data. I am still paying the tax amount that the previous owner was paying, so I know that I will have to cough up 4500 extra based on the selling price that I purchased it for. Hope this has been helpful. Have a great day!

Have you asked the current owner what the situation is with the tenants? Did you ask the previous owner to have the tenants out before you became the new homeowner? If not and it's too far along in the process to ask now, Cash for keys might be the only option, or maybe even help them find a new place and move. 

@Ryan R. gave you everything that you would want to know about the area. Ryan, curious as to your thoughts on Hemet? I've lived in Murrieta / Temecula for 11 years, just recently moved to San Diego. The growth in that area has been amazing, prices have appreciated almost 300K in 10 years. I have seen the growth already hit Menifee and feel like it will keep pushing into Hemet, eventually turning that into a place where people will be buying and living. Have you looked into that area at all? 

@Bhavna Virmani also, Rainbow, Fallbrook area for STR/AirBnB. It's near the wineries, breweries and casinos of Temecula.

@Cody Crad just tried to install and it looks like the app is not available now. 

@Robert Hart Welcome! I know that feeling of going down the rabbit hole of investing, is very addicting and after you get your first, you want your second. I'm an investor and agent in the Riverside / San Diego Area. I bought my first Duplex in San Diego with an FHA and have my VA loan in my back pocket for my second investment. Starting to hunt that one down in the next month or so. If there is anything that I can assist you with, feel free to reach out.