Investor · Frisco, TX · Member since 2014 · 31 posts · 6 votes
I am interested in a MHP that is for sale in Dallas metro. The MHP does not own any mobile home - only lots are rented. Can you please suggest how the deal should be structured to keep the property taxes at current level and not go up significantly post the sale? Thanks for your inputs.
Investor · Frisco, TX · Member since 2014 · 31 posts · 6 votes
12y
Thanks, John. There are no other improvement except main utility lines. The higher price asked by the seller is a business value derived. Would splitting the sale price in the contract into components (land, business value etc) help and if so what could be those components? Thanks again.
Investor · Vincennes, IN · Member since 2013 · 223 posts · 108 votes
12y
Basically what John said, the purchase price needs to be based on what you will be paying in taxes, not what the seller currently pays. Unless you are buying at a discount, plan on taxes going up.
I am not sure how Texas handles assessed values on property, but first you need to ask;
1. Is it already assessed reasonably?
2. If so, is the purchase price that much higher than the assessed value?
3. If it is significantly higher, you should be asking what justifies the sellers price. Is it a deal?
If the price is justified and the numbers make sense(and is reasonably assessed), go ahead and do the deal. There are easier ways to reduce expenses. Much success.
Investor · Frisco, TX · Member since 2014 · 31 posts · 6 votes
12y
On further due diligence, found that the seller made an 'error' and had shown lower property tax value in proforma sheet. Verified with the county website/ appraiser office and found the property is appraised close to sales price. So the taxes are also higher :-( and the numbers do not look attractive anymore. I am concerned with other numbers in the proforma and hence would not be pursuing it anymore. Lesson learnt - Nothing beats due diligence. Thanks for the inputs.