All Forum Posts by: Carrianne Mucho

David Rogers you asked: Can I petition to have these lowered if I pay a foreclosure price for the property? You should absolutely contact your local assessor to confirm how they arrive at assessed values. In California, the assessed value is based on the Market Value of the property at the time it sells. This may OR may not be the price you pay. I have seen many auction properties assessed above the purchase price because they were not marketed on the "open market" (through a realtor) and MLS comps were higher. The assessed value can be appealed, but be prepared to provide real evidence to support a lower market value...not just "$X is what I paid for it." There are many reasons that properties can sell for below their arms length value (and those are the properties we are trying to find, right!?!). I wouldn't rely on Zillow. Good luck to you!

P.S. 2% rule is difficult to apply in California. You might never buy anything! :D

Stagnant wage growth is also a concern. Wages cannot increase significantly until more of the discouraged and under employed workers can find full time jobs. The U6 numbers reflect under-employed workers...ie; part time when they used to work full time. (über drivers? :) Without pressure on employers to increase wages, the current appreciation rate (prices and rent rates) is unsustainable. Gov Brown has proposed legislation that may address the under supply of housing in California.

Embert Madison jr EDD reports unemployment rates monthly on their site. Useful info. Sacramento is actually outperforming the rest of the state however, the U6 numbers are what concern me at this point (discouraged workers). I haven't found U6 reported for local markets but if you find it, let me know! Construction has historically been a big industry in Sacramento (except in the peak of the recession) in addition to the service sector.

PITI Payment of $1100 only makes sense if you are putting down 25% at a rate of about 3%? (Or maybe more down with a higher rate)? Be sure the property tax estimate is based on YOUR purchase price, not the prior owner's assessed value! Are you figuring in the risk factor if you are using an adjustable loan product? What rate of return could you get on your down payment if invested elsewhere? The market has been hot here for a few years now; we may indeed see further appreciation but without stronger and more consistent employment numbers, and assuming rates will be increasing, I would assume appreciation to be generally moderate over the next few years. I may be conservative but I'd be hesitant to go into something with a monthly net loss counting only on appreciation. Run your numbers carefully. Also, even though the units are both rented now, it is foolish to assume they will always be occupied. Apply a typical vacancy rate for the neighborhood to CYA.

Thank you for sharing your journey. It takes a lot of courage!! I wish you the best.

I have a friend in the Sacramento area who got private money at 9%. They recently refied after rehab to pay it off as quick as possible.

@Veronica Pollán  I don't know about other states, but in California, they enroll the market value on the date of transfer.   This may or may NOT be the sale price.  If the sale price approximates what the property would have sold for on the open market with a "reasonable" marketing time, they will accept that as market value in most cases.  But @Wes Brand is correct, your local assessor's office can provide you with specifics.  

@Jay Hinrichs I love water more than mountains, but here in NorCal I get both!  

@Jay Hinrichs Carmichael is a nice established area.  Larger lots than new construction.  I've been wanting to get in the flipping arena, still trying to get my husband on board and Placer County where I am located is generally more expensive.  In the meantime, I will read and gather knowledge and hopefully help some others along the way.