All Forum Posts by: Chad A Burge

I am looking to purchase my first property here soon and started underwriting deals a couple days ago and thought I was doing it correctly based on asking price and everything was coming back with big cash on cash returns. Then when I was trying to calculate property tax I realized I needed to figure that out based on assessed value of the property. So now I have two issues, when I use the taxes provided by many of the PnL statements I find attached to the deals I am looking at like 3-6% cash on cash returns which I feel like is stupid low considering before that I was looking at 15-20% based off of asking prices. Second issue is I have only found one property with it's assessed value posted on the county's auditor website, all of the other properties I have looked at I can not find assessed value anywhere. 

Please help! I know I am doing something wrong when it comes to the math of the property taxes and I need help finding assessed values. 

Thanks!

@Bryan O. thanks for the info gives us something to think about! 

My cousin and I are looking at our first property, he's 21 and I'm 23 so we're new to this thing, we want to start with a multi-family. We were looking anywhere from 4-8 units to start. We were thinking about a 4 unit to get an FHA loan but wasn't sure if the FHA loan benefits out weigh another 2-4 units of rent coming in each month. From what we could tell the main benefits are when you have a low credit score it's easier to get the loan, is that the main benefit? Or are we missing something? Money down available is about $40k.