All Forum Posts by: Albert Hasson

 Why would you doubt the inflation numbers?  

@Virginia Franzese I wouldn't worry too much about this because I haven't spoken to a single person that likes this bill. Most don't even understand it. It's basically a convoluted way to unwind parts of TABOR. 

For renters, this gives up their TABOR refund for nothing. It has "rent assistance " in it but no actual explanation of how. Basically it gives regular landlords a tax break and increases taxes on STR owners. For the average homeowner, it's a temporary, minimal property tax cut in exchange for permanent loss of TABOR refunds. The bill doesn't really lower property tax that much per household/unit, it's only for a limited time and we'd be permanently giving up larger tax refunds through TABOR. Property tax primarily funds schools. So this bill would cut financing for schools in order to increase state revenue to fund schools in a roundabout way. Why not just pass a bill asking to raise taxes for schools?

I'm definitely not a huge fan of everything TABOR does (especially not how it puts the bulk of the tax burden on commercial property which is negatively affecting brick and mortar stores, restaurants, downtowns, malls, commercial real estate etc. that are already struggling after covid/ competition from internet sales), but this convoluted, multi-issue proposal is not the way to fix any of the big issues with TABOR IMO. 

Anyway Colorado still has some of the lowest property taxes (ranked 49th out of 50 states) and overall tax burdens (ranked 35th) in the U.S. We'll be alright if this does pass, but I highly doubt it passes.

Plus, it's named after itchy butt cream. 

Your property taxes are increasing $1800? (From negative $150 to negative $300/mo). That’s not good. A bad year for me is a couple hundred more. 

What I meant but the “if $151/mo would make all the difference” comment is if you had it, you couldn’t count on it. A fridge, a furnace, an ac unit could go bad and it would all be gone. So if you NEED that $151, this isn’t the property for you, you can’t afford it. 

One of my best investments was negative $800/mo cashflow. But I was paying off $1,500/mo in principle with a low interest 15 year mortgage. I was making $8k while showing a taxable loss of $12k (providing an additional $3k) while it appreciated about 5%/yr (generating another $30k/yr). So I was feeding the property $10k/yr to make $40k in year 1, the worst year. Now it generates $30k in Cashflow but it’s almost all taxable.  But I was ready for that investment because I was about making money, not cashflow. 

Your numbers don’t sound so promising. The tax is a killer. Would you make a profit if you sold? How much would you have left after taxes? Is there anything better to buy? You know this deal, paying $20-30k to buy something else has to be for a known better deal. Are you using a PM? Are you sure you’re getting market rents? (If you’re not using a PM contact a couple, give them the address and so them how much they would charge, how long it would take to fill, and what they charge you. You might find your net is higher than doing it yourself.) try to find a local expert. Good luck.