All Forum Posts by: Bryan Hartlen

@Greg Parker, @Robert Hansen & @Peter Philando - Sorry for the late response but wanted to say thanks for sharing your experience.  

Hi all.  I'm wondering if anyone has come across a guide for Montgomery neighborhoods?  Something similar to the Birmingham one here on BP (see this link https://www.biggerpockets.com/...).  I've searched but haven't found anything. 

Assuming there isn't; can anyone shed light on the Westend / Westgate neighborhoods (south or east of Fairview Ave)?  Is this a C class?  How bad is crime?  On the rise or declining? 

Thanks in advance!

@Jim Holmes I sent you a PM.

It’s going to be hard to reposition your units and get top rents while old tenants and (I’m assuming) poorly maintained properties are nearby on the street.  

So, if you can handle to the worst case scenario (no tenants = no cash flow) while rehabbing, then I would raise rents on existing tenants as soon, and as much, as possible. This will clear out most of the undesirable tenants and will let you rent the first repositioned units as being the ‘first’ to come in a new up and coming neighborhood.  

The other option is to work your way down the street, one duplex at a time and plan on first couple units rents to be less than rents you’ll be able to get for the last couple. Once all units are complete you can increase first units to market rents during the next leasing cycle. 

@Denise Evans thank you for the corrections.  sounds like filing for ejectment should always be the first step. 

Then you have to wait 3 years, the judicial period, before you can start the quiet title action.  No exceptions - even if the tax sale was more than 3 years earlier, or 6 years when you bought the deed?

The tax redemption process in AL is really interesting (and complex).  I think I have a basic understanding.  Is the following accurate?

If we purchase a tax deed for a vacant property from the state where the tax sale date was 3 years or more earlier:

• - We can immediately take possession (change locks, trash-out, maintain the yard, etc)
• - We can start the quiet title action immediately. Do we need to file for ejectment too?
• - If we start repairing (not improving) BEFORE the quiet title action has completed – any redemption would have to include the value (not cost) of our repairs and holding costs (finance, utilities, insurance, etc).
• - If we rent the property out BEFORE the quiet title action has completed any redemption:
• - would not require us to pay any rents collected prior to the redemption?
• - our tenants may have to vacate with 30 days notice?
• - If we sell the property out BEFORE the quiet title action has completed – how would a redemption affect us?

Thanks in advance for your insights!

@Zee D. if you already have a SD IRA or 401K setup talk to the folks that set it up for you. If you don't have one, then that's your first step. This stuff isn't DIY - you're going to want to find and pay an expert.

That said there’s a third strategy you might want to consider. If you purchase assets through one of these SD structures proceeds are tax deferred (good) but ALL proceeds go back in (good/bad depends on your specific situation). If you have a SD401k you could purchase the asset normally (outside of the 401k) but could then fund the 401k up to the annual limit (Which varies depending on age, other funds, etc). That way you generate some usable income and defer tax on some. 

@Ashley G. thanks for the sage advice.

@ashley g & @Denise Evans: I'm assuming you are filing the cost of repairs to confirm that you've actually spent money and possessed the property.  But the amount included in the redemption would be the valuation of those repairs - which we could prove through before and after appraisals (at possession and after repairs)?