All Forum Posts by: Craig Lessler

Does anyone have a recommendation for a property tax appeal  representative in the Phoenix area?

I have several condominiums which have been re-assessed and I would like an opinion as to whether it is worth filing property tax appeals.

I have rehabbed several properties in Phoenix with new kitchens.  You can message me and I can give you my contractor contact.

You should go to the website Rently.Com

You may want to ask your property manager to put a Rently Box on each house so that prospective tenants can look at the homes on their own without your property manager having to make a trip for each showing.  With a Rently, the prospective tenants give their credit card as security and in effect pre-screen themselves.  This way, the houses can be seen instantly by prospective tenants.

Isabella,

CAP rates are too low in Phoenix and a lot of the smart money is being invested out of state.

I purchased 22 condo units in Phoenix and Peoria in Nov 2015 and April 2017.  I have seen the Phoenix Units more than double in value and my Peoria units are worth 40 percent more than I paid.

I have sold 9 of my Phoenix Units and moved my money to Pittsburgh where I can find CAP rates of 8 percent and where properties have not sky rocketed in price.

I have purchased 14 properties (19 units) in Pittsburgh over the past year and my CAP rates and cash flow are much better.

I strongly feel it is the wrong time to be buying properties for cash flow in the Phoenix valley.  Although the Phoenix market may not be over priced, much better cash flow can be found in the Midwest.

Also, if there is a correction in home prices, Phoenix may potentially get hit harder than other areas which have not had such rapid appreciation.

Before you invest in Wilkinsburg, I suggest you speak to some property managers first.  My property manager refuses to manage any properties in Wilkinsburg.  I assume that there is a very good reason why.

Tax Question about deductibility of an annuity surrender charge in 2017.

If an annuity is cashed in to buy rental real estate and there is a large surrender charge, can that surrender charge be deducted on:

(1) Schedule A as a misc itemized deduction for 2017, or

(2) Schedule E as an expense to acquire financing to buy rental properties?

Yes, George you are correct.  If funds are kept in the 457B plan, they can be withdrawn before age 59 1/2 without any penalty and only subject to ordinary income tax.

Depending on your tax bracket, it might make sense to withdraw additional funds to invest in real estate instead of doing so in a SDIRA.  This is because all increases in the value of the retirement account will be subject to taxation later.  Often times it is better to pay tax on the deed rather than the harvest.

Ian, please message me with the contact information for your property tax appeal specialist.

I was told by Scott Phillips at Allegheny County that the increased assessment is due to permits being taken out to do a major rehab on the house by the former owner.

However, as an attorney, I know that the county cannot simply send out an increased tax bill without first sending out a notice of an increase of assessment like it did because that violates due process.

Thanks.

Does anyone know how property tax assessments and appeals work in Pittsburgh?

I purchased a SFR in Pittsburgh last summer and received a tax bill a couple months ago. I paid the tax bill.

On April 9, 2018, The County of Allegheny mailed a second Real Estate Tax Statement which reads "Tax Year 2018", "Taxable Assessment Increased" and nearly doubled the county property tax.

The time to file a tax period expired April 2, 2018.

However, since I was not notified of any tax assessment increase before the appeal expired, aren't my due process rights being violated?  What can I do to fight the increased assessment?