All Forum Posts by: Craig Lessler

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  If funds are kept in the 457B plan, they can be withdrawn before age 59 1/2 without any penalty and only subject to ordinary income tax.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

I own 31 units and have 7 Fannie/Freddie loans.

I am looking to develop a relationship with a good community bank or mortgage lender from whom I may quickly do a cash out refinance in the future in the event if I want to buy additional properties for all cash.

My last experience with a mortgage lender in Pittsburgh was a disaster.  The lender complained about having to review all of my leases and income and expenses on all my properties (most of which are owned free and clear), dragged its feet and then tried to charge an interest rate and provide loan terms which were ridiculous.

I have excellent credit.

I would like to be underwritten and have a pre-approval in place so when a deal comes up, I can be in a position to quickly refinance and pay cash for another property. I would like low loan costs and a competitive fixed rate.

If anyone has a good recommendation for a Pittsburgh bank or mortgage lender, please let me know.

Thanks.

Inga C, you can message me. I have two rehabbed ranch condos in North Phoenix in a very good location near the 101 and not far from Desert Ridge. I just sold one today before closing he Unit could hit the MLS. The prior one I sold last month sold within hours after hitting the MLS. The next one will be ready on Thursday.

2 BR, 2 BA.  $150K.  White Shaker Kitchen Cabibets.  White Quartz Counters.  New tile back splash.  New walk in shower.  New Bath Vanities.  New flooring and carpets.  Stainless Steel Dishwasher and stove.  Many other upgrades.  863sf.  408 units in complex.  Fannie and Freddie financing available on these units. 

Monthly Costs:

HOA: $150

Taxes: $38

Insurance: $15 to $20 (HOA fee includes a blanket insurance policy).

Since last summer, I have closed on the purchase of 6 SFRs in Pittsburgh. I am under contract to close on a 4-plex and another SFR on March 9th. I am using a property management company to help me find deals, renovate properties and rent and manage them. I am investing in B Class neighborhoods or better. Rents on the 6 previously purchased SFRs range from $950 to $1,200. I try to meet the 1% rule and get an 8% CAP (although I may take a little lower CAP rate for a prime property bought below market).

I would go with an independent agent who can shop the market as opposed to a captive agent.  If you would like, you can message me and I can give you the name of the independent agent I have used for all of my Pittsburgh properties.

Four Condominium ranch style Units (2 Bedroom, 2 Bath, 863 sf) in desirable La Crescenta Condominiums.  All leased to stable, long term tenants with professional property management in place.  Solid Class B neighborhood.  408 units in the complex.  The units are warrantable (Fannie and Freddie financing available).  Addresses:  (1) 501 W Hononegh Dr, Unit 6, Phoenix, AZ 85027, (2) 521 W Hononegh Dr, Unit 6, Phoenix, AZ 85027, (3) 20401 N 3rd Dr, Unit 6, Phoenix, AZ 85027 and (4) 601 W Tonopah Dr, Unit 6, Phoenix, AZ 85027.  Condo units in this complex sell and lease fast.  Community swimming pools.  Good location.

Firm Sale Price:  $130,000 per unit.  All 4 units for $520,000.  Similar units with upgraded kitchens, baths and flooring selling for $150,000.

Current Rent: $895 [Market Rent $1,000 based on comps]

Monthly Expenses:

HOA Fee: $150 [Includes blanket insurance policy]

Property Tax: $39  [$466 per  year].

Insurance:  $19  [$226 per year for $10M umbrella and interior contents]

Property  Manager: $60

our income is too high to qualify to make Roth contributions.

My 457B Plan offers the Roth so up to $18K or so per year can be contributed.  However, the investment options are limited to publicly traded investments.

I prefer not to put any more money in retirement accounts.  I think they are poor planning tools. The IRS essentially has a lien on my entire harvest in the future.  I think I would be better off paying tax on the seed.  Retirement accounts do not work well when you end up in a higher tax bracket in the future.