Hey everyone, got a few questions based on a property I just bought back in August. Basically, I got a steal of a deal. Brick home built in '41, furnace and water heater and AC all less than 2 years old, roof less than 8 years, brick recently tuck pointed etc. All mechanical in good condition. It is a 2/1 with a 1 car on a nice city lot in a desirable suburb outside of the Twin Cities, MN, just into Wi. It has a full staircase up to a full attic with large side dormer(for walk in closet or bathroom), and full poured basement.
I intend to finish the upstairs attic into the master suite (bathroom still up in the air as it will be a huge POW for the buyer, but will cost quite a bit to get it done up there) and finish the basement with a full large bathroom, laundry room, living/media room, and an office/non-legal bedroom with a full walk in closet. Right now it is already plumbed for a shower and toilet and they function, but will need to be moved. OK - so with that info...
After educating myself quite a bit on here, my game plan is to finish these things while the loan seasons, and cash-out refi this house to pull out some equity to purchase another property. I bought the house at 82k conv loan 5% down (78k financed), 30 years @ 4%, tax assessed value was at 160k back in the boom (just for simple reference) right now as a 2/1 I believe ARV to be about 115k, maybe a hair more. Finished as a 4/2 or 4/3 I hope for it to appraise for at a minimum of 130k (based on comps I am very hopeful for more). If i can get it appraised at 130-140k, my idea is going conventional @ 20% equity to lose the PMI to help offset the payment increase, and cashing out the difference. Any advice or input on this game plan?
Lastly, I am paying taxes on 160k still. On my first house, I called my city tax assessor when my taxes were bumped up in 2011, and I was able to get my tax assessed value lowered back to 2010 value. Upon further review, my tax value has been lowered over 20k, but the amount due has been the same since 2010, those sneaky bas.... The tax value is still 8k+ over what I actually bought it for. My question and idea is, call and ask to have my house assessed to have the value lowered to possibly lower my taxes, before I make the improvements. If I were to do this, would his hurt my future appraisal for my potential cash out refi?
Any advice and input is appreciated. Thanks!