Tap into Equity of property with back taxes
Hello BP Fam!
I recently found a property with about 43k in back taxes. Let’s say i rehab this property without paying the taxes first, will the taxes get payed off on the backend after refinancing it? Will I be able to get financing (Heloc/cash out refi/dscr loan) on property that owes 43k in property tax? I want to use the forced equity after it’s rehabbed to pay the taxes off so I can keep the property for a rental and cash flow. Arv is about 130k and property is in need of gut rehab estimated to 35-40k. No mortgage liens (only property tax) and the current owner doesn’t care for it and is willing to sell for 7k! Thanks for the help BP family. I don’t want sell this beautiful deal!
Property taxes owed: ~43k
Rehab: ~40k
ARV: ~130-135k
Rent:~1600-1850(and going up)
Most Popular Reply
@Justin Williams I don't think you can purchase the property without taking care of the back taxes. Any time you close, you will have to take care of those before you get title to the property for sure. I would also be a bit nervous about the 35-40k estimate for gut rehabbing the property. I think you might be underestimating how much this project will cost to be honest. Do you have the capital to do the reno? Do you have a solid GC?