All Forum Posts by: Evan Manship

@Connor Smith 

I am a real estate tax consultant based out of Indianapolis. If you purchase a property for more than the assessed value, the jurisdiction will almost always chase that deed that is filed with its recording office.

This all depends on the county/township, however. Some do it almost immediately, while the bigger counties could take up to two years to adjust the newer value.

@Alex M. 

I have struggled with this too. I have been looking for a 4 unit multi-family property that would suit my needs for the better part of six months with nothing to show for it. I am wasting valuable time getting involved with my real estate investments. I am beginning to look into duplexes and maybe even huge value add SFRs.

Glad to see that someone else out there is struggling with me. It is hauntingly frustrating at times.

@Sunny Suh 

The $225,000 pre-qualification number would encompass the total purchase price and renovations. However, these renovations must be value-adding renovations to your property. For example, adding a bathroom or new siding would be permitted, but throwing a hot tub and a gazebo would not.

Your FHA 203k consultant and FHA certified contractor should keep you apprised throughout this process for what is acceptable and what isn't.

I have spoken with many investors about how they handle their property taxes and the overwhelming majority seem to appeal their annual assessment only when the value jumps a certain percentage (say 5-10%). There are also some who appeal each year with the thinking that they can justify some sort of market momentum slowing.

However, many investors are unaware that the system that generates their assessment is a convoluted mass appraisal which is constantly making errors in calculations which cost investors hundreds each year.

How do you investors particularly with large portfolios of properties make sure that you are being taxed equitably?

@Dan Perrott 

what part of Castleton? I have always wondered how duplexes fared. I work off of Allisonville and 82nd and thought that there may be potential in the area. What are rents like?

Thanks for the feedback everyone. Looks like I am leaning that way. @Shawn Holsapple 

the $1200 fee was the same piece of advice that one of my mentors gave me. It seems steep but if I only run a few deals I am still breaking even.

Even if I only write 1 deal every 6 months, I still should be good, right?

I am considering getting my broker's license in the state of Indiana. The cost is $599 for the online self-paced course, $60 for the test, and $60 to apply for licensure. I may already have a managing broker willing to take me on board. I would be doing this part-time for side deals and deals of my own.

It seems like it would be easy to break even if I achieved my license. I'm curious to hear from other investors who have completed or considered it and all your recommendations.

There is nothing wrong with utilizing a conventional home loan for a property like this - if you can secure one. Most banks are weary of lending to investors with the newly implemented protocol associated with the crash in the housing market. Nonetheless, if you can leverage a property when the numbers are good, it makes all the more sense to keep more money in your pocket to use for an additional deal.

@Michael DeStefano 

Many of these value estimates are very simple mass appraisal algorithms that are employed by the site you are using. They take things like market trends, local sales, and comparable listings in the area and generate a price to give one an opinion of value for the property.

While it is a cool tool and works in some areas, I recommend not paying too much attention to it. These algorithms do not count for deferred maintenance, condition of the home, among other things.  

Also, this property may be a short sale or some other type of distress sale that has parties with ancillary interests in the deal. It may be listed at $174 but they may only accept $250+ pending a true appraisal.

@Kiel Bollero 

It all depends. Honestly, there are a LOT of people here on BP that have served as essential connections and partners whom guided me through my first few deals. There are people on here who will help, connect, and even invest in your projects. BP is a great place to start connecting and learning. Use it just like FB and LinkedIn.