Tampa, FL area (Newbie)

7 Replies

Hello,

A friend told me about this site/podcast and decided to join.

A question that I had for people around my area is:

What are some FL location specific costs that they have noticed while rehabbing/flipping/investing?


Thank you for checking out my post!

Won, 

welcome to the site. can you be more specific on your question? I dont know of any real specific costs associated in the tampa area. maybe any tree permits can be one that I would think of in the city of tampa. 

Welcome, Won.  And, the costs you're referencing may be Florida's Documentary and Intangible Taxes:

"“Documentary stamp tax is an excise tax imposed on certain documents executed, delivered, or recorded in Florida. The most common examples are documents that transfer an interest in Florida real property, such as deeds; and written obligations to pay money, such as promissory notes and mortgages."  Documentary Stamp Tax on the deed transferring real property would be calculated by taking 70 cents for each $100 or fractional part.  Additionally, a promissory note is the document which details the amount owed, interest rate, and the terms of your promise to repay which the state will assess a tax of $.35 cents per $100 of the face value of any promissory note. Unfortunately, we are not done yet, because there is also a one-time nonrecurring tax commonly referred to as “intangible tax” which is calculated at 2 mills per each dollar amount of the note ($.002) secured by the mortgage."

Fun, huh?

Originally posted by @Aaron T. :

Won, 

welcome to the site. can you be more specific on your question? I dont know of any real specific costs associated in the tampa area. maybe any tree permits can be one that I would think of in the city of tampa. 

Thank you for replying Aaron!

What I mean't by that question was, if anyone noticed for example, extra cost for hurricane preparations on the house or general interesting tax laws that most Floridians overlook while invest,flipping, and etc. I did notice that the tree permit is something that I would have overlooked while working on a property.

@Won Kim the one thing that surprised me is that taxes are reassessed at the sale in pinellas county. So the taxes you see listed could be very different from what you could end up paying. Also, watch for homestead exemptions.

Flood zones are something to look for.

Roofs will be more expensive to pass a wind mitigation inspection.

Thos are just a few of the things I found to be different from the northeast, where I'm from

Originally posted by @Patricia Steiner :

Welcome, Won.  And, the costs you're referencing may be Florida's Documentary and Intangible Taxes:

"“Documentary stamp tax is an excise tax imposed on certain documents executed, delivered, or recorded in Florida. The most common examples are documents that transfer an interest in Florida real property, such as deeds; and written obligations to pay money, such as promissory notes and mortgages."  Documentary Stamp Tax on the deed transferring real property would be calculated by taking 70 cents for each $100 or fractional part.  Additionally, a promissory note is the document which details the amount owed, interest rate, and the terms of your promise to repay which the state will assess a tax of $.35 cents per $100 of the face value of any promissory note. Unfortunately, we are not done yet, because there is also a one-time nonrecurring tax commonly referred to as “intangible tax” which is calculated at 2 mills per each dollar amount of the note ($.002) secured by the mortgage."

Fun, huh?

 Thanks for replying Patricia!

As a newbie on this forum and site, this is very interesting. I guess everyone wants a piece of the pie.

Side note: One exception to this law would be during the divorce settlement. 

Originally posted by @Jason D. :

@Won Kim the one thing that surprised me is that taxes are reassessed at the sale in pinellas county. So the taxes you see listed could be very different from what you could end up paying. Also, watch for homestead exemptions.

Flood zones are something to look for.

Roofs will be more expensive to pass a wind mitigation inspection.

Thos are just a few of the things I found to be different from the northeast, where I'm from

 Thanks for replying Jason!

I thought about flood zones in Florida as well. Not only that, we have to look out for signs of sinkholes (which could compromise the foundation of the building). 

Originally posted by @Won Kim :
Originally posted by @Patricia Steiner:

Welcome, Won.  And, the costs you're referencing may be Florida's Documentary and Intangible Taxes:

"“Documentary stamp tax is an excise tax imposed on certain documents executed, delivered, or recorded in Florida. The most common examples are documents that transfer an interest in Florida real property, such as deeds; and written obligations to pay money, such as promissory notes and mortgages."  Documentary Stamp Tax on the deed transferring real property would be calculated by taking 70 cents for each $100 or fractional part.  Additionally, a promissory note is the document which details the amount owed, interest rate, and the terms of your promise to repay which the state will assess a tax of $.35 cents per $100 of the face value of any promissory note. Unfortunately, we are not done yet, because there is also a one-time nonrecurring tax commonly referred to as “intangible tax” which is calculated at 2 mills per each dollar amount of the note ($.002) secured by the mortgage."

Fun, huh?

 Thanks for replying Patricia!

As a newbie on this forum and site, this is very interesting. I guess everyone wants a piece of the pie.

Side note: One exception to this law would be during the divorce settlement. 

Interesting, I had to pay documentary tax and transfer tax and all that good stuff in a transfer during a divorce.