All Forum Posts by: Jim C.

I can probably certainly guess who this was... They get houses under contract (especially HUD homes) and then try to sell them using bandit signs throughout NWI and Chicago Suburbs. If they can't sell them before they run out of contingency time, they find something wrong with the property just to get their EMD deposit back. I've bought a few properties from them since they knew the listing agents and exactly what to bid. Some of these agents will 'disclose' what other are bidding... It's wrong, but they get 'greased' to do it.

Be Careful with the 'Bandit' signs in Merrillville. I had a friend who worked for a wholesale company selling homes in Merrillville, and had code enforcement 'fine' them for every sign they placed in town limits.

Are your current tenants moving out and have already given notice? Have you been inside the house to see the condition? I typically show my houses when still occupied, UNLESS then tenants have it really messy or alot of damage. When my current tenants give notice (30 days), I tell them that I will start showing it within 2 weeks. I then contact them 2 weeks later and do an inspection. If the property looks ok, I then tell them that I will be having an 'open house' the following weekend. I typically can rent my houses in 2 weeks or less.

I certainly have not and would not hold the house for 30 days.

I too had a tenant after a year lease want to do month to month since they were looking to buy (They were paying $1000 month). I said sure, but the new rent amount for month to month would be $1800. They complained but finally agreed since it was more of a hassle for them to move twice than to pay extra and move once, and the fact I think that they couldn't find anyone else willing to do month to month..They did finally buy a house and closed, but that was 5 months later (putting and extra $4000 in my pocket).

Thanks @ANISH TOLIA I appreciate your information. But, some counties (Such as Lake County) in Indiana are allowed to 'add' to the 2% cap due to "Voter approved projects and charges" (Another way the politicians worked a way to skirt the 2% cap in Indiana). On one of my properties, it adds an additional $1200 above the 2% cap to the taxes. In this neighborhood / area, it seems that 12% of these SFR homes are rentals. The sale prices in this area have dropped as there were alot of REOS over the last several years. This is in a lower middle class area. I think I'm at my max rent amount which is in line with other rentals in the area. Perhaps time to do a lease-option to sell.

On one of my properties, a 3 BR, I purchased it 4 years ago for 42k. Its currently renting for $1000 a month. However, the Assessor has it valued at $170,000! I filed an appeal, and showed them comps in the area, but they said that since my property was purchased as an REO / Foreclosure, that they couldn't do anything for me. At 2%, the taxes are $3,400.00. BUT, in Indiana, they also allow for additional fees due to voter approved projects, etc which can effectively make the 2% be more.

I have several properties where it takes 4-5 months of GROSS rent just to pay the annual property taxes. Is everyone else seeing this with their properties??????

In Lake County, Indiana, the Sheriff's sales are for Foreclosed properties put up for 'auction' so that the title becomes the successfull bidder, usually the banks (They typically bid the entire default amount + fees). The Assessor has Tax Lien sales that can be redeemed by the original owner up to 1 year after tax sale. What were you asking for, and perhaps I can provide you more information on either one, as I have done both.

How much security deposit did you get when they moved in? Did you purchase the property 6 months ago, or where they just in a 6 month lease? I have sued tenants for damages after they moved out and included pet fees (if they got a pet and never paid fees), and have always been awarded fees. BUT, getting a judgement is the easy part.... Its the collecting that the hard part. I've always done my own legal proceedings without an attorney due to attorney costs. You would still be liable for attorney fees, even if the tenant is 'uncollectable' due to unemployment, getting paid cash under the table, etc.

Ugly houses are only ugly until you buy it cheap and fix it up to flip or hold and rent it out. I love ugly houses because most flippers will pass "uglies' up.