All Forum Posts by: Jackson Sandland

@Dave Carpenter I'll have to check on the map. Why do you ask? What location would affect the price?

I'm not, but I'm not averse to creating one. Would that open up the possibility of better rates? Maybe LLC tax breaks?

I'm working with a local lender, but their rate is the 5.8%

Wells did a 5.3% last year for the same investment, except the first was SFH, and this is a duplex.

@Brie Schmidt Thanks!

If you're using a lender to buy a property, how do you find loans with great interest rates?

One lender just quoted 5.8%, which feels too high. 

J

@Brie Schmidt Without the tax assessed value having weight, how do you gauge the value of the property you are buying?

Thanks for breaking that down @Mike Lowery!
My lender will run their assessment, and if they come back lower than the seller's ask, we can re-negotiate. 

If we can go under ~$100k that would be an added bonus.

Tax rationale makes sense. I guess I can benefit from a year at a lower assessment. 

The CoC looks really good.

Thanks for your perspective. 

Do you think making a larger down payment is a good strategy to improve cash flow? I'm also considering trying to do a BRRR investment. Seems like that is a great way to get a decent return on your money!

@Mike Lowery Not sure they are "comps" considering those other sales are SFH, and this is a duplex, but correct me if I'm wrong about that. I do see it as a positive sign that flippers, and buyers are interested in paying well for the houses next door. The $50k tax assessment is from 2017 :/ I've seen pictures, and the interior, and exterior are in great shape. They've been doing work on the property for the existing tenants. Not sure why an assessment this year would double the assessed price, but yeah it would be hell on the tax bill. The cash flow is ~$600 with taxes considered around $100k. If they remained with the $50k assessment, the cash flow would be almost $700 - that would be icing on the cake.

@Brie Schmidt Washington Heights

I"m looking to buy my second investment property. I've got an off-market duplex in a great Milwaukee neighborhood. Houses on either side of the duplex are selling fast for $140k cash, and up. There are two tenants already renting for a total of ~$1500 / month. Some back of the napkin calculations, including all expenses, shows a possible $600 / month profit. Not too shabby. The property is priced around $100k. Here's the rub:
 I checked the property value assessment for 2017, and it's assessed at $50k. 

When investing in multi-families, do you pay attention to the tax assessed value?

Knowing I'd be paying almost twice the tax assessed value is giving me pause b/c there's no built in equity at the time of sale. Appreciation for the neighborhood is very strong as well. It's been going up 20% / year as of late. What do my fellow real estate investors think of this deal?

Thanks!

Jackson

@George Taylor Thanks. This sounds like a good strategy. The property could be updated. The only caveat there is that I'm sinking even more cash into the property. The neighborhood is typically more owners, than renters, so that may bode well for a re-sale at some point for a retail price. What updates do you find boost selling price in a substantial way?

@Anthony Dooley Taxes are a little high. It would be great if the taxes reflect the sales price. Are you familiar with how to have the county tax assessor apply the new value? That would be very helpful.