All Forum Posts by: Chinmay N.
Chinmay N. has started 3 posts and replied 39 times.
Post: Understanding Property Taxes in Columbus
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Quote from @Scott McEntee:
Quote from @Chinmay N.:
Quote from @Allen Tracy:
Quote from @Chinmay N.:
Quote from @Allen Tracy:
Quote from @Chinmay N.:
Quote from @Allen Tracy:
Saleh (the original poster of the link you provided) and I meet up weekly and we've both gone through the terrible process of having to pay two years of property taxes when we didn't even own the property (cost me roughly $10k). Luckily a law just passed that will make it illegal for the School Board to go after non commercial properties for back taxes so you should be safe going forward on having to pay back taxes.
The way I typically go about it is I look at the taxes charged vs the tax assessment value to determine the percentage of taxes in that specific area (it varies widely across Columbus). Then I multiply by that percentage by the amount I would like to purchase the property for and figure that eventually the property taxes could be that number. Sometimes if you're lucky that tax assessment is still under what you purchased the property for but running the numbers at purchase price should give you a good buffer.
I believe they try to update the values every 3 years if they can.
The 15 tax abatement program is something you can apply for if you do a major remodel like moving walls or adding rooms onto the property. I don't know the exact details but I do know the application process can take a while but could be extremely beneficial if you're doing a huge remodel.
Can you share the link to this particular law that blocks school board from going after past-year taxes? I'm more curious if this law makes it harder for the district to ask for increased taxes on transfers. Thanks
H.B. 126
https://www.mondaq.com/uniteds...Thanks! This is very interesting. Does this mean that the school board can no longer ask for property tax increases based on the transfer price (on the auditor's site) for 1-4 unit properties purchased with a conventional loan? That would be a game changer. I'm also assuming that the accessors from the city are not going to be too aggressive with tax increases in their 3/6 yearly audit cycles.
That's what I'm really hoping for. They've already screwed me out of tens of thousands of dollars. I know investors that were leaving Columbus because of it.
I found out about the school board pushing for tax increases when I called the county tax accessor (they were nice enough to warn me) a few days before I need to close on a couple of deals. I had to scramble last minute to modify the contracts. This has really slowed me down in Columbus and I have had to move to other markets.
Based on the timing of the reply it looks like the deals you're referring to closed just before HB 126 was passed. My question would be are you still having issues with the school board pushing for increases since the law has passed?
I'd be curious to know the answer to this as well
Post: Understanding Property Taxes in Columbus
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Quote from @Allen Tracy:
Quote from @Chinmay N.:
Quote from @Allen Tracy:
Quote from @Chinmay N.:
Quote from @Allen Tracy:
Saleh (the original poster of the link you provided) and I meet up weekly and we've both gone through the terrible process of having to pay two years of property taxes when we didn't even own the property (cost me roughly $10k). Luckily a law just passed that will make it illegal for the School Board to go after non commercial properties for back taxes so you should be safe going forward on having to pay back taxes.
The way I typically go about it is I look at the taxes charged vs the tax assessment value to determine the percentage of taxes in that specific area (it varies widely across Columbus). Then I multiply by that percentage by the amount I would like to purchase the property for and figure that eventually the property taxes could be that number. Sometimes if you're lucky that tax assessment is still under what you purchased the property for but running the numbers at purchase price should give you a good buffer.
I believe they try to update the values every 3 years if they can.
The 15 tax abatement program is something you can apply for if you do a major remodel like moving walls or adding rooms onto the property. I don't know the exact details but I do know the application process can take a while but could be extremely beneficial if you're doing a huge remodel.
Can you share the link to this particular law that blocks school board from going after past-year taxes? I'm more curious if this law makes it harder for the district to ask for increased taxes on transfers. Thanks
H.B. 126
https://www.mondaq.com/uniteds...Thanks! This is very interesting. Does this mean that the school board can no longer ask for property tax increases based on the transfer price (on the auditor's site) for 1-4 unit properties purchased with a conventional loan? That would be a game changer. I'm also assuming that the accessors from the city are not going to be too aggressive with tax increases in their 3/6 yearly audit cycles.
That's what I'm really hoping for. They've already screwed me out of tens of thousands of dollars. I know investors that were leaving Columbus because of it.
I found out about the school board pushing for tax increases when I called the county tax accessor (they were nice enough to warn me) a few days before I need to close on a couple of deals. I had to scramble last minute to modify the contracts. This has really slowed me down in Columbus and I have had to move to other markets.
Post: Understanding Property Taxes in Columbus
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Quote from @Allen Tracy:
Quote from @Chinmay N.:
Quote from @Allen Tracy:
Saleh (the original poster of the link you provided) and I meet up weekly and we've both gone through the terrible process of having to pay two years of property taxes when we didn't even own the property (cost me roughly $10k). Luckily a law just passed that will make it illegal for the School Board to go after non commercial properties for back taxes so you should be safe going forward on having to pay back taxes.
The way I typically go about it is I look at the taxes charged vs the tax assessment value to determine the percentage of taxes in that specific area (it varies widely across Columbus). Then I multiply by that percentage by the amount I would like to purchase the property for and figure that eventually the property taxes could be that number. Sometimes if you're lucky that tax assessment is still under what you purchased the property for but running the numbers at purchase price should give you a good buffer.
I believe they try to update the values every 3 years if they can.
The 15 tax abatement program is something you can apply for if you do a major remodel like moving walls or adding rooms onto the property. I don't know the exact details but I do know the application process can take a while but could be extremely beneficial if you're doing a huge remodel.
Can you share the link to this particular law that blocks school board from going after past-year taxes? I'm more curious if this law makes it harder for the district to ask for increased taxes on transfers. Thanks
H.B. 126
https://www.mondaq.com/uniteds...Thanks! This is very interesting. Does this mean that the school board can no longer ask for property tax increases based on the transfer price (on the auditor's site) for 1-4 unit properties purchased with a conventional loan? That would be a game changer. I'm also assuming that the accessors from the city are not going to be too aggressive with tax increases in their 3/6 yearly audit cycles.
Post: Understanding Property Taxes in Columbus
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Quote from @Allen Tracy:
Saleh (the original poster of the link you provided) and I meet up weekly and we've both gone through the terrible process of having to pay two years of property taxes when we didn't even own the property (cost me roughly $10k). Luckily a law just passed that will make it illegal for the School Board to go after non commercial properties for back taxes so you should be safe going forward on having to pay back taxes.
The way I typically go about it is I look at the taxes charged vs the tax assessment value to determine the percentage of taxes in that specific area (it varies widely across Columbus). Then I multiply by that percentage by the amount I would like to purchase the property for and figure that eventually the property taxes could be that number. Sometimes if you're lucky that tax assessment is still under what you purchased the property for but running the numbers at purchase price should give you a good buffer.
I believe they try to update the values every 3 years if they can.
The 15 tax abatement program is something you can apply for if you do a major remodel like moving walls or adding rooms onto the property. I don't know the exact details but I do know the application process can take a while but could be extremely beneficial if you're doing a huge remodel.
Can you share the link to this particular law that blocks school board from going after past-year taxes? I'm more curious if this law makes it harder for the district to ask for increased taxes on transfers. Thanks
Post: Understanding Property Taxes in Columbus
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Quote from @Remington Lyman:
Quote from @Kristina Anderson:
We invest in Columbus. There are two ways we estimate taxes. First is to simply look up current taxes owed (go to Franklin County auditor website), divide by the last sale price, which gives you a %. Now apply that percent to your purchase price. It's not 100% accurate but gives you a good indication. The other way is to use the tax estimator on the auditors site: https://apps.franklincountyaud... We also sometimes just look at how much the purchase price differs from last sale price. If the seller bought the property for 100k, and you are going into contract at 200k, you can assume taxes will double.
I hope this helps! Taxes in Columbus are pretty high in most areas and really cut into cash flow.
Tina
A lot of investors drop and swap properties to try to avoid the tax step up. This requires you to purchase in the name of an LLC so make sure your lender will allow you to do that.
Do lenders allow you to drop and swap on regular non-commercial 30 year loans? I always assumed you have to buy in cash into an LLC and then cashout refi after taking the property out of the LLC into your own name.
Post: CMHA in Columbus Ohio
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Quote from @Remington Lyman:
Quote from @James Luctamar:
Hi All,
Hope everyone is doing well this evening. Currently working with my property manager in Columbus and the tenant I inherited is under a CMHA program. I wanted to know that if anyone has any recent experience with this program? Apparently there is a switch going on in that department that is making communication extremely difficult. I wanted to know if this is something happening across the board for all section 8 programs in Columbus as I'm currently in the search for filling a unit with a section 8 tenant but my PM is telling me it's very difficult right now. Would appreciate any inputs.Thanks in Advance,
James
I think CMHA is about to get sued
I'd like to see that happen. I can't believe how dysfunctional and painful it's become for tenants and owners in this past year
Post: Passive investing: Multifamily vs REIT
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
@Lane Kawaoka I'm assuming you learnt a lot and did a lot of good hand-on REI growing your net worth to half a mil. What was your motivation behind moving your capital into syndications after having learnt how to DIY successfully?
Post: property management in Akron
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Originally posted by @Esther Hyun:
@Chinmay N. Hi! We're also investing in Akron and would love to be connected to your recommended property manager. Any chance I could connect?
Hi Esther. I sent you a DM with the referral of my property manager. Curious to hear more about what type of properties you are looking at in Akron.
Cheers.
Post: property management in Akron
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Originally posted by @Javaras Thomas:
@Chinmay N
Hey! Yes that would be great to connect with some PM you have worked with. Right now I’m looking at a duplex and one student housing. Any recommendations?
I just DM'ed you my property manager's contact details. Akron is a pretty bid university town in the area. Let us know how the duplex and student housing deals go for you. Cheers!
Post: property management in Akron
- Investor
- Jersey City, NJ
- Posts 39
- Votes 22
Thanks @Jonathan Greene!
@Javaras Thomas 👋. It's nice to meet a fellow Ohio investor. What type of properties are you looking at in Akron? I've been working with REM Commercial and would love to tell you more, make introductions. Cheers?