@Anthony O. Yes, taxes can rise roughly by 10% a year max, but at your price point I don't see that being a serious problem. However its a problem in the higher price points where values can shoot up causing an extra $1,000 in taxes. Your price point is relatively safe from drastic changes in your taxes.
Thank you for the reply @Caleb Heimsoth. Would you recommend, or do you know of alternative options that would support my situation? Either a cheaper market, or an alternative strategy?
@Anthony O. So you have 25K which is enough to get you into a hard money to perm loan on a 100k property provided that the ARV is high enough. Lubbock, TX is one of the best growing markets in Texas at that price range plus its a college town with an increasing number of students looking for student housing. You might wanna check it out! Hope this helps!
@Anthony O. So you have 25K which is enough to get you into a hard money to perm loan on a 100k property provided that the ARV is high enough. Lubbock, TX is one of the best growing markets in Texas at that price range plus its a college town with an increasing number of students looking for student housing. You might wanna check it out! Hope this helps!
Thanx for the Tip Aaron. Coming from a state with a limit on the amount property tax can be raised, I have a concern about property tax in Texas. I understand that it can rapidly increase. Is this an issue you’ve dealt with?
@Anthony O. Yes, taxes can rise roughly by 10% a year max, but at your price point I don't see that being a serious problem. However its a problem in the higher price points where values can shoot up causing an extra $1,000 in taxes. Your price point is relatively safe from drastic changes in your taxes.
@Anthony O. I would think you need more than $10K working capital before making an Investment Purchase.
Based on your posted comments - I don't perceive you have experience in rehabbing or managing rehabs as part of your background.
And, based on those perceptions, I would suggest you lean more to buying something essentially "ready to rent" rather needing serious work.
A "ready to rent" property will cost you more upfront. But Rehabs, regardless of the quality of your Pre-Purchase Inspection or the Contractor you hire to do the work always seem to need more extensive (costly) work once you start tearing things out.
@Anthony O. I would think you need more than $10K working capital before making an Investment Purchase.
Based on your posted comments - I don't perceive you have experience in rehabbing or managing rehabs as part of your background.
And, based on those perceptions, I would suggest you lean more to buying something essentially "ready to rent" rather needing serious work.
A "ready to rent" property will cost you more upfront. But Rehabs, regardless of the quality of your Pre-Purchase Inspection or the Contractor you hire to do the work always seem to need more extensive (costly) work once you start tearing things out.
Thank you Jim,
Things are starting to point that direction. I did have a question regarding cap rates.. when you calculate your total income are you deducting the cost of your mortgage from that number?