All Forum Posts by: Shrikant Kakani

I am looking to invest in properties built in the 1920-1930s and wanted to know if it makes sense to do so?  Just from the cash flow perspective, it is making sense, but I wanted to know how your experience has been? Some of the questions I'm asking are as follows:

- Age of roof and HVAC

- Any major maintenance issues/fixes done recently

Hi All,

I have been reading a lot of books and listening to a bunch of podcasts about real estate investing and I feel like I'm ready to take the next steps. The huddle I'm facing right now is I stay in HCOL (San Francisco) where investing won't make much sense due to high property prices. Hence, I have been exploring a few LCOL/MCOL markets, but I am not sure where to invest. Thus, I decided that out-of-state investing would make the most sense. Here's my research:

- I have been exploring Ohio and Texas, but the property taxes are extremely high and there will hardly be any cash flow. The same issue lies with Chicago as well.

- Then I checked out the Detroit market and realized that the job and population growth has declined in the past few years and landlords are finding it hard to fill the vacancies.

- Lastly, I checked out the Colorado market (especially Colorado and Colorado Springs), and the property prices are high there and hence, it won't cash flow there either.

Hence, while I want to begin my journey, I am not sure where to start. Maybe I'm overthinking? But being a rookie investor, I'm terrified and need help exploring the path to success. All inputs are welcome.

Thanks!

@Jonathan Styer Thank you for your reply. Would you please tell me how the properties are appraised? If I buy this multi-family property, will my property be appraised at the selling price?

I'm looking to invest in one of the multi-family properties in Columbus and the purchase price is going to be $300K for 4 units. Currently, the owner is paying around $5,400 in property taxes as confirmed from https://treapropsearch.frankli... website. The tax summary is shown in the image attached. My question is how is the "100% tax value" calculated? Is that the purchase price? From taxable income and tax paid, the tax rate is coming out to be 7.2% (5460/75600) which is really high! Assuming 8% property management, 8% repairs & maintenance, 8% cap expenditure, and 5% vacancy, the property is already generating negative cash flow and if the property taxes are increased, it'll be even worse. Is there something I'm missing out on? Any guidance will be helpful :)

PS: I have looked at several other websites for more information on property taxes but it's more and more confusing since each website is stating different facts.

https://smartasset.com/taxes/o...

https://apps.franklincountyaud...