All Forum Posts by: Matt Ashbrook

@Michael Plante I've considered that, but I also really like the cashflow, even if it is halved.  Additionally, once the taxes get sorted, I'm going to look into refinancing and pulling out some cash and rolling that into another deal or two.  If I can keep this one, keep increasing rents, and keep building equity, I would prefer to do that.  That's part of my plan.

@Ron H. I'll have to check into that, you may be right.  I did get the estimate awhile back.

I suppose one thing I should note here is that the value that the assessed value is based on the loan amount. The FMV of the property is approaching double that.

I also supposed this is a good lesson. I knew it would increase, but I didn't realize the previous assessed value was based on a third of the FMV when I purchased the property. Another thing to look for... You really learn a LOT on your first one, I suspect I'll learn a LOT on my second as well.

I was hoping there might be a standard program where they will agree to increase the taxes at a more reasonable rate, and get me to the assessed value over three years or something along those lines.  @Austin Johnson, are you aware of anything like that?

If I open this can of worms, is there a potential that the county will reassess the property and realize that it's worth much more than it is and the taxes will increase that much more?

I have a triplex in Tampa, FL that I BRRRR'd minus the pulling the money out (yet) about a year ago. I just got the property tax assessment, and the property taxes have increased from ~$1700 to ~$6500 yearly. 282% increase. My profit is halved, which REALLY slows down the cash flow which was slotted to go towards my next property. Now I know that the county doesn't care about that, but is there anything I can do to get this reduced or at least an agreement to increase it less for the next few years until it gets to market rate (for lack of a better term)?

I'm about to start calling local banks in preparation for a refinance, and possibly to fund future deals.  I don't know who to call.  Should I call local banks?  Credit unions?  Regional banks?  What questions should I ask?  What is the most important thing to you?

@Anthony Gayden I think you hit the nail on the head, if it meets the criteria, it's a good deal.  I like the idea of tenants staying longer, less maintenance issues, and no utilities.  I'm not worried about the closing costs, as I'm going to be holding on to the property long term, so that isn't a concern, though it is something to consider.

@Elise Marquette I am working with an agent that works in investment properties, be it MF, SFH or builders, she's very passionate, and hustles when we find good deals. I'm going to give her a little more time now that I've expanded my search.

@Brett Baginski sounds like we're in the same boat, there are deals to be had, and getting started is more important than finding the perfect deal.  I'm not planning on living in any of the units, that would somewhat simplify things.  I haven't done much mailing, but I'm considering it.  If you have suggestions on mailers or companies, I'd be happy to hear them.

@Anthony Gayden I'm going to dabble in that.

Thanks for the replies everyone, let's keep this conversation rolling.  I'm curious to know everyone's thoughts (pros and cons) specifically on the difference between owning one 4-plex versus four SF.

I was listening to the BP real estate podcast with Meet Kevin the day I posted this.  When I hopped back into the podcast, about 42 minutes in, they were talking about when you're having a hard time finding multi family because the inventory is low and competition is high, go where the competition isn't looking; single family.  When the market goes back down, those people buying up the MF are going to want to sell at some point, and in the meantime, you're getting experience, building equity, and cash-flowing.

All that said, I'm still going to look for MF, but if the right SF comes along and the numbers work, I'm going to jump at it.  @Austin Steed I have tried finding deals off market, the few wholesalers I've dealt with we NOT knowledgeable, and didn't actually have the deals they said they did.  I do want to go driving for dollars, and see what I can find, I just haven't made the tome for it.  As for the 10 loans, at that point, I can find a portfolio lender and consolidate, I'm not too worried about that.  @Isabella White making the numbers work is number one.  If it isn't going to cash-flow, I'm not going to buy.

I've been looking for my first investment property for 4-5 months now.  I've put in a few offers, but been unsuccessful so far.  I have been looking for 2-4 unit properties for the same reason everyone is, but mainly for me is the security of multiple rent checks coming in.  I just got outbid on a triplex, and I'm getting discouraged.  I'm considering looking for single family just to get started, as I know that's an important part of getting started (you know, actually getting started).  All of that said, I'm starting to feel like building a portfolio of 3-4 single family homes is similar to having a 2-4 unit property.  What are everyone's thoughts on this?

I'm in St. Petersburg, FL, looking in the St. Pete, Tampa, Clearwater, FL area; looking to BRRRR.

@patrick menefee Awesome! It's reinforcing to hear that even if it's difficult and testing, if you push though and persevere, you can really kick butt. I'm in pursuit of my first deal, and like you said, I know I have no idea what's coming. Great job!

@James Wise, @Dion Martorella, thanks for the hospitality.