Hey everybody just finished my first BRRRR!! So I purchased my first property 1 year ago for $290,000 and bought with an FHA. During that time I did a bathroom addition and did some minor rehab and paint. With these upgrades my appraisal came back right at $380,000. So this gives me right at my 20% mark of equity. So I'm able to drop my pmi, also I dropped about 1 point in interest. Oh and I forgot to mention I was also doing a house hack during the BRRRR, so I'm renting the rooms out.
That being said I decided to not do a cash out Refi and by doing this I was able to get my payment down significantly. At this time in my life I need as much cash flow as possible. That being said I have a problem with the county tax assessor. They did there assessment before I did my Reno and the price they came up with was $430,000!!! So the way I figure it, with my new appraisal they should be lowering my property taxes. And I called them today and they said they would document the new appraisal but it wouldn’t change my property taxes. Does anyone have any experience with this? Is this the way it’s done or am I getting the run around?
So all that is great I’m I am super happy about the way this first project has turned out. And I truly owe it all to BP for teaching me all of these wonderful real estate strategies.
Congratulations! On the way to real estate wealth.
Best of luck in all your endeavors.
A house you purchased for $290K was assessed at $430K? You then made renovations after which the house was appraised at $380K? I have no personal experience in Oregon but this sounds crazy from the get-go. Why push the $380K appraisal on the tax assessor? You purchased for $290K and that's where it seems the fight should be.