All Forum Posts by: Rohan J.

@Todd Douglas - I generally buy multis and small apartment complexes in Missouri, Ohio, Indiana . I tend to aim for under <$35k a unit in C+/B- neighborhoods, and then rent to blue collar workers for anywhere between $450-600 per unit. Hows Michigan for returns? :) 

@Matt R. @Jason V. - thank you for all your insights! I think I should have clarified that I'm not actually investing in CA.... these properties with high tax rates are ones that I'm looking at in Ohio.

Thanks everyone for all your help - I will definitely look at each on a case-by-case basis now! Just got a little shocked when seeing these 4%+ plus tax rates.

Hey Neil Aggarwal - I live in LA so it's difficult right now to find properties with numbers that work. I've had success in the Midwest so i want to continue to push there .

made an error on my first sentence in the first post: meant to say

**** "the neighborhoods that I like just have really high property taxes." *****

hi @Neil Aggarwal and @David Dachtera - thank you so much for the quick replies! I don't think I'll be able to get the taxes re-assessed, so I'll assume they'll stay the same for now.

However, even when allotting $500 of rent each month purely for this extra tax fee, the numbers still make sense.... which is why I'm going back and forth on whether I like this property or not.

I think I just have this irrational fear of buying a 4-unit out of state with incredibly high taxes... it's like I almost feel like a bad investor if I'm paying so much of my cash flow towards something like taxes. 

I was curious to hear BP's general thoughts on high tax rates, and it looks like you guys have calmed my irrationality :) I'm going to look and see how much the tax rate has appreciated in the past decade or two, but if the numbers still hold, I will start moving the ball forward on it. 

feel free to let me know if anything else comes to mind that I should consider when buying in a higher tax area! Thank you

thanks @Lee Ripma - will reach out to @Jerry Padilla shortly!

hey BP - I've been looking around in Ohio for smaller multis and apartment buildings, and while the rents can be great, the neighborhoods that I like just have property taxes. 

For example, I'm looking at 4plex in a B- neighborhood that is listed for $140k and rents for $2400/mo, but annual taxes are $6100 (4.4%!) . 

In my calculations, I'm just allotting $500/month of rent purely towards taxes, so that I can stay conservative and see if the numbers still work (so basically I'm running the numbers assuming I actually get $1900/month in rent). Anyways, something still feels uncomfortable about buying a property with this high rates, and I'm worried things could increase in the future.

Anyone have experience buying a property with 4%+ property tax, or do you just avoid those?

If you did buy it, did you regret it? 

Did you find a way to bring it down? Would love to hear everyones thoughts on this.

I'm going to start purchasing multifamilies and smaller apartment buildings in different states in the midwest, and I'm hoping to have to only work with one lender. 

Has anyone had any success here working with one of the bigger banks (e.g. Wells Fargo, Bank of America, etc) to get multiple loans for rentals across different states? 

These properties will be a mixture of residential and commercial, and will most likely extend over 10 mortgages too.

I really don't want to have to find multiple portfolio lenders in each state, but if that's the only way, I guess it will have to do.

(If it helps, I live in Los Angeles and have 7 rentals currently. Also, my financials look good, so qualifying for the loans shouldn't be an issue.)

Last week I got notice of a 12-unit portfolio in KCMO up for sale, and the deal looks really great. The seller stated he MIGHT be willing to entertain the idea of seller-financing (he owns all the units outright), but needs to think about it for a bit. I asked him why he was selling all of the properties, and he said he is in the middle of a divorce and needs to unload.

Anyways, it's been a week and he hasn't replied back to me yet. I'm thinking that I might lose this deal, and I was wondering if there is anything I can offer him (outside of paying for his attorney fees) that would help him in the divorce process? Is there anything non-monetary that he may need that I can help him with? It's clearly the #1 priority on his mind, and if there is any way I can help him with that, I'm sure he would pick me to sell to over others.

I'm just trying to get creative in order to find a way to acquire this portfolio by helping with a big problem that he has ... any tips, advice, or experience is appreciated. :)

Nick Patterson Great post. Mind sharing the kind of purchase price and returns you're seeing in/near Chicago for your multis? Do you buy in A B or C level neighborhoods? Always heard it was tough to get deals near Chi , but would love to hear first hand experience.

@James A. - thanks for the quick reply. Definitely going to try to find these reports from the larger commercial firms!