No special assessments are pending, the dues is $110 per unit, rents are $700, taxes $695

They're NEVER F&C due to regular HOA fees and those dreaded "special assessments".

As long as the fees are REASONABLY in line with the local market, assessing quality is all that matters, in my opinion.

We drove the surrounding area to assess the condition, competition and employment opportunities.

I went to the county auditor’s website; I found the assessed value and tax info.

Assessed value for that home is $21,300It is a relatively rough neighborhood... the high school isn't the best.

I always assessed rates after underwriting the risk, but I understand most can't or won't do it.

There are states like Texas that reassess propety tax values every year that doesn't happen in california, so a tax assessment in texas will be more accurate or helpfull than in other states, not resale value but at least more helpful.

Dawn I would say the rate is high because of this:"Bank will do the deal at 15% down and 10 year fixed 6.5%"Only 15% is being put down instead of 25 to 35% the typical bank is asking for.So they price potential of default and all the other factors with appraisals and equity spreads into the rate.For much larger down the investor on the loan will take a much lower rate if it is a premium property.Less risk-less return is almost tied to anything.You need to go back a few years at least.I like to go five to ten and see how much insurance and property taxes have risen for that property on an annual basis.If they have not risen and stayed flat or went down I find out why.Could be a mistake on the city or counties part and it's fixing to go up or could be a temporary assessment relief program etc.The point is if these sharply rise in the near future it can throw off your projected numbers.I would try to fight the property tax if comps support it and get the taxes lowered to increase your bottom line.Regardless of age if you mishandle a a property (even a new one) and get crap tenants in there your maintenance costs will be huge.I have seen the wrong tenants DESTROY and brand new looking apartment in a matter of months.They also created a bug problem for the other good paying tenants that kept their place clean.With my buildings I have it in the lease that we do unit inspections every few weeks and if they do not keep the place clean then we evict immediately.When tenants apply we find when we say this upfront it gets rid of the deadbeats wanting to live like slobs,have unauthorized pets,and have big parties that trash the place.When factoring repairs is this property local to where you live??

Here in NY, the park owner is assessed the property tax on the resident-owned homes and is supposed to recoup it through the rent.