I have a potential motivated seller with home close to University of Houston.
2 bedroom 1 bath
Lot: 5000 sf
Tax Assessor: $55,652
Its hard to pull comps as most homes are larger but the median price in zip code according to Truila and Zillow is around $245k
Seller says this was a relative's home who passed away 2 years ago and the relative was on disability so they were "tax exempt." However, the seller recently got a bill from county saying he owes taxes now and must pay back taxes around $28,000. The seller says he would like to walk away with at least $10k for the property.
1. How do I find out how much the taxes really are?
2. Seller claims the home should have been tax exempt due to disability. Can someone explain this part to me if you have had experience with it?
3. Does this appear to be a good deal that I can sell? I estimate the rehab at roughly $15K but got a cost on less than $5k to demo the home and start from scratch. Since its near the College, I figured a savvy fix and flipper could build a duplex or triplex on the 5,000 sq foot lot and rent it out to students and make a killing.
Thanks in advance for your advise and expertise BP patrons!
Well @Phillip Smith you could call a title company and they might be able to "give" you that information for a fee. Of course, when you actually have them sign the purchase agreement you will know every single detail about what is really owed or not. So I say you also try to go to your local county treasurer's office online. (If you guys have it online and I am sure you do) Then try to click the "Pay My Tax Bill" button which will tell you what should be owed. You should be able to just type in the address and it might have this. Your best bet is to partner with someone from here who is actually doing deals and offer for them to work with you and you guys just split it down the middle (if wholesale) or work out a way for you to have an interest. Check with a real estate attorney to know your rights and your limitations regarding doing any deal especially if you do not have a license. There are some weird laws out there.
This website should help you out.
Thanks @Stephen Barton & @ Ron Collins!
I was able to find that they owe closer to $32K now in taxes.
So found the answer to my first question, just need assistance on 2 and 3 please.
@Phillip Smith be careful when pulling comps. This could be a good deal if your comps are accurate. Since you said it is smaller you need to adjust your ARV to maybe 225K. If you are getting comps from Zillow then those are really outdated and your best bet without a Real Estate License is to find an agent who is willing to get you some REAL comps.
That said, your total cost sounds to be around 57k. That is with your rehab at 15k I would say add 5k to that just to be sure if this is your first deal. Add in the seller's back taxes and their 10k they want and you will get to 62k all in. This is a no brainer if your market is really saying you could resell this. I recommend calling @Jon Klaus or @Jerry Puckett they live closer to you than I do and may be able to guide you better. I would say you need to partner with someone until you can do this all on your own. There are alot of things that you could miss and potentially get yourself into a mess without the right guidance. I wish you well Phillip and feel free to call me or Jon or Jerry they are great people and very savvy investor's who will more than likely be willing to help you!
Thanks @Stephen Barton. I did shoot an e-mail to @Jerry Puckett before posting on here but he may be tied up right now and I wanted to get back to the seller fairly quickly in this looked like something I needed to move quick on.
I also reached out to a Realtor friend and asked if she would pull comps for me since I was struggling a bit in making sure my ARV was right since this piece is critical.
I just realized this was posted in the wrong forum and needs to be in the Wholesale forum.
Take the owner with you to the successors office as some of them will not talk to you only if you are not the owner. Than when you talk to the successors clerk you can clear up all the confusion.
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