All Forum Posts by: Carrianne Mucho

Regarding the conflict in use vs. zoning, if the second unit was built and permitted a long time ago, the zoning could have changed since then and it may have been "grandfathered."  This means that if it existed before zoning disallowed such use, the city would not expect an owner to tear it down to conform to current code.  Your best information would come from a visit to the Assessor and Building Department...they will answer your questions and it may take a few hours perhaps but worth it to have accurate answers to your questions. I would also ask if it were to burn down at some point, could it be rebuilt as such?  You can try calling these entities but it could take awhile for them to respond and you may not get a thorough answer.  For the information you seek, I think a visit in person would be worthwhile to get immediate answers.  Best of luck!  

@Andrew Johnson - Excellent point about interest rates.  I try to make this point weekly to non-owners who think they will save money by renting for 2 more years in the hopes that the market will top out and decline (so maybe they go up 5% annually, then drop 15% for a net drop of 6.5%?) Meanwhile, they've been overpaying for rent, missing out on tax deductions, and mortgage rates might have gone up 1.5% making their overall monthly payment a couple hundred higher than it would have been even though the price of the home might be lower.  

@Drew Pak, @Yia Her, @Branden Smith - Market is hot right now.  Many builders are out of inventory and many of my clients even in the mid-range (400Ks) are competing with multiple offers.  Building moratoriums in Natomas which have only recently been lifted, high permit costs, and lengthy land development approval processes have limited the supply of homes, thus our low marketing times.   

 Can't seem to tag you so please see my post above. 

It typically takes five years of delinquent payments before the county will auction a property.  Most tax collectors are willing to set up payment plans and anyone can pay the taxes, it doesn't need to be the owner of the property.  

The most obvious option is to offer to purchase it from them directly.  Since they don't need to market it, you would save on Realtor and marketing fees.  Because you know they are in a tough spot, you can help keep them from losing the property altogether, while potentially getting a good deal for yourself. 

Another option is to offer to catch them up on taxes in exchange for a percentage of ownership in the property.  And since they are in a tight spot, I would ask for a generous percentage.  For example, if the amount of delinquent tax is 5% of the current property value, I might ask for a 10% or 20% ownership in the property.  Of course, I am assuming there are no other liens or debts against the property which could put your investment at risk.  Be sure to have a contingency plan or agreement for how future unpaid taxes would be resolved since they could continue to expect you to pay the taxes.  Also be sure that you are protected if they decided to mortgage the property. 

To find out the timeline and amount of tax due, your best course of action is to contact the local tax collector.  It might be helpful to locate the parcel number prior to calling.  Here is the site for yuba county.  You might also check the upcoming auction list.  http://www.co.yuba.ca.us/Departments/Treasurer/auc...  

@Kevin Franklin  

Hi @Perry Arnold, I'm in your area and I see this is your first post... have you been hanging out on BP long?  Happy to connect if you need pointers or finance info.  

The best contractors seem to be fairly busy right now!  What is the extent of your project? 

See my responses to similar questions here: 

https://www.biggerpockets.com/forums/51/topics/424...

https://www.biggerpockets.com/forums/51/topics/429...

https://www.biggerpockets.com/forums/311/topics/38...

I used to work for an assessor's office as an appraiser so if you believe any of your properties are assessed above their fair market value, feel free to message me and I can let you know what to expect and what information to arm yourself with.  

@Kent Kiess - I'll send you a message. 

Thanks for the reference Wes!  

Ken, Wes is correct, getting pre-qualified is the best first action step for you so you know what your budget is and what your financing options are.  You are welcome to contact me if you'd like to learn more about renovation financing and other options.  The best way to get where you want to go is to figure out where you are!  I'm happy to give you advice regardless where you decide to purchase. 

Thank you for sharing your story @Anastasia Orth!  I'm excited for you to begin this journey!  

I'm located in Sacramento as well (I mainly work out of our Roseville office, but have an office in Sacramento too).  Feel free to message me with any questions relating to appraisal, property tax, or financing.  

@Kent Kiess Ditto what Chris Mason said.  Both 203K and Homestyle use specs and bids from the contractor provided to the appraiser to determine the after repair value which is what the loan would be based on.  You are able to use your future equity to make the needed repairs or updates. Be sure to work with a loan officer who knows renovation.  These loans don't have to be complicated but they do take more skill than a typical refi so ask them when was the last time they did a reno loan.