All Forum Posts by: Mark Gruetzmacher

@Ned Carey The policy for the county I am in is that the taxes are due Oct. 31st.  Any taxes not paid by then will go up for bid.  Notice of the properties available for bid are posted in the local newspaper this year on the 10th and the sale is the 3rd Monday of Dec. which is the 15th. I am not sure how many liens they had but it wasn't tons.  Population for the county is 100K.  The rest of the counties around will be much smaller populations like 29K and then 5K.  The next largest town is 6 hrs away which also makes investing in buy and holds a little tough as well.

Thanks

@Jerry K. @Joshua Morrill Thanks for the replies back.  These are somewhat interesting areas of the investment portfolio.  I will have to do some checking area the area counties and see what they also do.  How are the interest rates figured?  For example if you paid $1000 for the tax lien and the rate was 10%. If it was redeemed in 1 month do you get the 10% which would be $100 or is the 10% based on a yearly basis? So 1 month would be 1/12 of the 10% and thus 1/12 of $100.  Now that I type this it sounds kind of dumb to get the later of the two examples you never know I guess unless you ask. :)  

They also published a list of all the late mobile home taxes as well.  I also wondered if that was more for info purposes or if they sell liens on those also.  It's alot of info that's for sure.  I will have to call or go to the county to get more info as well.

Appreaciate all your feedback.  Thank You.

@Joseph Ball That was about my consensus as well but never really looked much into it until now.  Thanks for the reply. 

Hey everyone, the idea of tax liens have crossed my mind a few time but I wonder if it is even worth the work involved for the returns available.  I have done some checking and the county treasurer told me that there is a 3 yr redemption period so you would have to pay the taxes for the 3 yrs and if they don't get redeemed you can proceed further.  I was also told the interest rate starts at 10% and goes down from there if there are bidders on it.

We only have a tax lien sale once a year also.  They just posted in the paper the properties and then on Monday they have the sale.  Pretty mind boggling looking at 2 pages in the paper with just the legal description and tax amount plus then they have the sale only  five days later.

Is that how it normally works.  Is 10% interest normal as well?  Maybe it is just me but only having 5 days from posting what's going up for bid and the sale date would make for a ton of work to be completed to have an enough time to make an informed decision.  

As it has crossed my mind some I just wanted to check it out.

@Steven J. 

Thanks for the comments. I will that link out Steven. John, it was put on the basement from the get go. It is a 1999 and in 1999 it was put on the basement so it was planned that way. Not saying it is correct just saying. It also passed VA loan inspection at one point if they inspect anything. I have another post about purchasing it as well. If I do buy it for sure I will try to remember to take some pictures of the support structure.

And no I don't see much for double wides on basements either.  Very few.  

Hello Everyone, I am looking at buying a Double Wide on a basement.  I am wondering how it is supposed to be supported correctly.  The outside edge I think sits on the basement wall.  I think the 2 inside frames are supported by those metal house supports.  Does anyone know they should be supported or have a diagram of some sort.

Hey everyone, just thought I would run this by you guys and see what your thoughts are. I came across a foreclosure that was on the market for $35K. It was a 1999 28x60 on a basement and 1 acre of land in the city so city water and sewer. It sold back in 2007 for 120K. Tax assessment in 2013 was 119K. The VA owns it now. The issue with it is that it has mold. The basement had an unknown amount of water throughout. Looks like at least 6 inches. Being that the owners left the property and turned off the power, the sump pump was not pumping. Also the landscaping on the outside just leads to problems, IE-ground sloping back toward basement,missing downspouts, etc. One downspout even stopped right next to a big window well. This past spring we had a few times where we got 2-3 inches of rain which I think aided in the water in the basement issue. So since the basement was finished and water was in there, mold started growing. There is mold spots on the walls 2/3 the way up on the drywall. There is some surface mold upstairs on the kitchen counter top and on a window sill just a little bit. Overall the upstairs is in decent shape though. The belly blanket is still on the underside of the double wide and shows no signs of mold there. Ceiling doesn't show signs either.

My thought was to totally gut the basement.  All the floor coverings are gone already, no doors or trim I don't think either.  So tear out the drywall and replace studs.  The plan was to use it as rental because the rental market for that should warrant $800-1000.  I planned on have some mold service come out as well.  I have no problem trying to clean it up myself as well but would like to get some estimates as well.  I think I would plan to demo most of it first and then have someone come out to look at it.  What do you think?  I think it is well worth the asking price but the word MOLD scares people away.  

What would you do and how would you do it?

Appreciate your feedback.

@Dave Toelkes So if we sell it and not rent it, no matter what the gain will get taxed as self employment?  If selling it put you in a higher tax bracket, does all of the gain get taxed at the higher rate or is it just the portion over the starting point for the next bracket?

@Tatyana Shevnina Thanks for the reply.  Yeah I need to check into some things to make sure.  Initially I will be legal owner but I was told I can add my sister after and it is fairly simple.  Would make it a lot easier if she was on the title as well so then the split is done pretty easy like you mentioned.  

Hopefully someone can give me some helpful info.  My main concern is with the tax implications.

We just purchased a SFR, actually a Manufactured Double Wide on a Basement and 1 acre of land. The property is being purchased just in my name alone. My father is actually buying it for my sister and I to split though. The plan initially was to rent it out because the cost of the home was not too much and figured it would rent for around the 900-1000 mark. Closing is in a few weeks but now they are thinking it should just be rehabbed and then sold.

The plan was to add my sister on the title after closing since she lives 6 hrs away.  Now they think it is a better idea to rehab and sell instead of using it as a rental.  My concern is with taxes.  My understanding is that the gain could be a decent amount and as such if it is rehabbed and sold then I would have to pay taxes on the gain.  By doing so it will most likely move me up to the next tax bracket as well.  Plus then I would have to split the profit with my sister as well.  I think there is issues there as well if I was to give her x amount of money too.  How should things be structured so I can get this deal done?  I was kind of a quick decision kind of thing so nothing was thought out at least from the other parties.  I don't plan on this being a long term partner deal either.  If it was going to be a buy and hold I would consider things different. 

Suggestions...

Regards