All Forum Posts by: Aaron W.

I received a notice for hearing with the county Board of Review for our multifamily property in Dayton. Apparently, the Board of Education there tracks commercial sales and files against these properties once they are sold to raise appraised value for property tax calculations.

How have you dealt with this situation?

I believe in paying our share of taxes, but if it goes up proportionately to the rate we are currently paying, then this makes the property less appealing and we may end up dumping it and nixing a large multifamily we are under negotiations for right now.

Thanks for your thoughts!

I received a notice for hearing with the county Board of Review for our multifamily property in Dayton. Apparently, the Board of Education there tracks commercial sales and files against these properties once they are sold to raise appraised value for property tax calculations.

How have you dealt with this situation?

I believe in paying our share of taxes, but if it goes up proportionately to the rate we are currently paying, then this makes the property less appealing and we may end up dumping it and nixing a large multifamily we are under negotiations for right now.

Thanks for your thoughts!

@Darius Ellis  It's a tough real estate market right now with many investors and a lot of competition. I'm assuming Tuscaloosa is no different.

You've got to find a way to set yourself apart from other investors. Network, network, and network. This can be with other investors, brokers, and service providers. People need to know who you are and what you do. It's a grind.

Through diligence and action, education, and networking you'll be able to get something under your belt.

Best of luck!

@Anya Kotova What is the concern with getting an EIN for the subsidiary LLC? As an LLC, the income should pass through to the Wyoming LLC should it not?

I am not an accountant, but we have our entities set up so our subsidiary LLCs are owned by our parent LLC. Every LLC has their own EIN. The income passes from the subsidiary to the parent LLC.

Maybe I'm missing something and look forward to an accountant/CPA to clear this up.

@Savai Smith The amount you need to bring to close will depend on the financing you get. If the property is priced low enough, then you could pay for it in cash. 

These financial numbers should be plugged into your analysis to see the returns you can expect. Then you choose the best method for your strategy on that property.

Best of luck!

@Aditya Tor  If you are looking for cash flow, then you are not going to find it in NoVa. You may still be able to find properties for appreciation, but those are likely swept up very quickly. 

I live here but do not invest in it for these specific reasons

If you are looking for cash flowing properties, then you should look outside of NoVa or out of state. 

Best of luck!

@Artur A. Many decide to invest out of state because of affordability of properties and more potential properties available. There are other factors that go into a decision to go outside your market as well, such as market cycle, political climate, taxes, etc.

I used to own in the Bay Area and sold off my property due to the high taxes and opportunity for better returns elsewhere.

Best of luck!

@Hadi Hidou  You can look to purchase property with all cash.  Another option is to partner with someone who has better credit and can help be a guarantor on a loan. You will need to bring something to the table that the partner doesn't have the skill or does not want to do.

Best of luck!

@Bryan Findlay What would be the interest rate for your HELOC? Typically, they are a little higher than a refi. However, the advantage with a HELOC is you only pay interest on what you withdraw. And they are typically interest only during the withdrawal period.

With a refi, you'll probably get a lower rate to borrow the money, but you will start to pay back the loan right away. 

How quickly you plan to deploy the funds can also be a determining factor on which one you want to use.

Best of luck!

@Shanice Waller There are lots of questions to ask, but for me, I'd want to know these few basic questions to see if it is worth pursuing:

1. Why is the seller selling?
2. What deferred maintenance is there?
3. What recent maintenance and capex on the property in the last 3 years?
4. What is the age of the major mechanicals (water heater, AC units, etc.)
5. Will the seller provide financials and rent roll for review?

Do realize many times you might have to take what they say as a grain of salt. You'll want to conduct your own inspections to verify what the seller is telling you. You want to find out enough information during this period to see if the property is worth digging further into.

Best of luck!