All Forum Posts by: Shivam Patel

Hello Bigger Pockets Family!

We just closed on a house in Houston, TX and desire to start our journey with BRRRR.

We want to remodel the home (kitchen, bathroom, attic room, add a bathroom, etc.). To find a good and reliable GC is important to begin with while getting the quotes in. Are there any local investors who can recommend me a good trusted GC or lead me towards a path to find one?

Any tips and guidance will be much appreciated.

Thanks!

Apologies for late response being MIA but thank you all for the valuable feedback. 

Your opinions steered me towards right research and I'm feeling confident with my numbers. I learnt that the worst case scenario is that they do not bump up the taxes more than 10% in a year. That is the absolute cut off. Thus, I'm factoring worst case scenario and crunching my numbers.

Many thanks again!

@David M. Thank you for the clarification. I'm investing in Texas and the tax rate in my area is about 2.55%. Market is still hot here, so sale prices run significantly higher than the AS IS property values. Thus, more of what I wanted to know is that after the sale, will the appraised value for taxes fluctuate significantly too? Even if it goes higher, is there a usual cap (e.g. can only increase by 10% of the taxes last year, etc.) on tax increase, which can help me factor in worst case scenario crunching my numbers. 

Also, keeping the property AS IS v/s remodel will determine taxes to go high?

And will Primary Residence v/s Investment Property purchase determine taxes to go higher?

Many thanks again, Sir. 

@Kenny Dahill I got you there, Sir. ;) I'll surely be looking into it.

Hello,

I'm trying to estimate taxes for the rental property expense estimation I'm having a hard time figuring how much taxes will hit me per month in future if I were to buy the property.

Example: As per County Appraisal District, the property is appraised at $100,000 & taxed at 2% (tax rate), so taxes are $2,000/yr. Let's say I bought the property at $150,000. Does it mean my taxes will be 2% of $150,000 = $3,000 now on OR will I still be taxed at $2,000 going forward?

Basically, what defines and when will the value of the property change and by how much, for it to be taxed accordingly?

This will help me estimate taxes better in analyzing rental properties and cash flow. 

Thank you in advance.

@Kenny Dahill & @Jasmine Delves, thank you very much for the valuable info. 

I think I'm leaning towards using online rent collection. Is there any good property management softwares that you'd recommend and then I'll look in depth to pick one for my need?

Also, on a complete U-turn scenario: If I decide to keep this triplex as a rental (investment) property as is and not occupy it. (Reason: I found out that this triplex have long term (5+ years) tenants in it and wish to continue further, so may be good to keep it renting as is and delay remodel). Saying that, I'll have to look for another primary residence at the same time and get financing on my spouse's name or vice versa. Nervous thought! Is this the only good scenario or are there any other ways to go about this or any flags to watch out for, if I do this?

Also, during financing, I'll have to decide NOW if I need to go with primary residence conventional loan or investment property loan on the triplex. Concerned about this! Any ideas on this?

I'll appreciate any advice on this.

Thank you!

@Nathan Gesner Thank you for the direction. This is very helpful.

Hello,

I just got my first tenant occupied Triplex under contract and the leases don't run out till June 2022. I plan to vacate the two units in the front at least, do some remodel and move in ourselves. The third unit we plan to rent out and manage. This is our first home/property buy and we plan to live in there at least one year to comply with conventional loan and potentially move on and rent the entire property out.

This is my base goal and since I'm new to investing, I'm seeking every and any advise from my Bigger Pockets community during the near future process and managing the tenants, property and remodel. I'll appreciate your pointers on what to look out for now on and best possible path forward.

Many thanks in advance!