All Forum Posts by: Ryan Davis

@Matt Devincenzo thanks for your input. I reached out to the county accessor and asked to point me in the right direction in the code of laws where it says this and he told me to take a look at SC Law 12-43-220. I will include a link below: 

https://www.scstatehouse.gov/code/t12c043.php

So it looks like he is right. The only way I can claim the entire property with homestead exemption is if a immediate family member moves in and proves that they live there. 

I would rather suck it up and pay than get caught 2 years down the road and have to pay penalties plus the two years I was sneaking it past them. 

@Mindy Jensen I house hack in my duplex. I am learning that the homestead tax exemption doesn't apply to my full property since I rent the other side out. Is there a way I can still qualify for homestead exemption without getting in trouble with the county?

@Naftali Tolibas Also, if you are planning to house hack in this duplex, make sure you read my latest post. https://www.biggerpockets.com/forums/311/topics/536177 Learn from my mistake, do your research first and don't misjudge taxes. It is coming back to haunt me now.

@Naftali Tolibas yes, as do most landlords that you will hear from on here. Theres not much to it. My tenant pays $112 a year for renters insurance. It protects you and it's only a couple bucks extra a month for them. They will have no problem paying it (Or shouldn't).

@Mike McCarthy I paid $10,000 more than what the tax value is, so I dont think I would have much of an argument. Good thought though

@Daniel Hyman I have some friends who house hack as well and they claim the entire property as their primary residence. They advise me to do the same, wouldn't this be "illegal"?

When I bought my first duplex I planned to house hack. My mortgage payment was a supposed $906.59, and it was, for the first two months. Then I got an escrow statement in the mail. This letter made me aware that my mortgage was increasing $263 a month thus making my mortgage payment $1169.59. As you can imagine, I was shocked. After reviewing further, I realized that it was my property taxes that were increasing…after a few phone calls, I realize a made a big mistake. Let me explain,

The previous owner (a distant landlord) was previously paying $2300 a year in taxes. My mortgage officer knew I was going to live in one side so she estimated my taxes at 4% which would have only been about $900…Little did I know that if I were going to rent the other side out, I couldn’t legally claim 4% for the entire property. I now know that if you house hack, you have to file 6% property tax for half and 4% for the half you live in…duh…I should have caught this. Also, my property tax value has went up by $20,000. So now my payment is going up significantly and this greatly effects my cash flow.

I am renting the side I don’t live in currently for $800/month and once I move out, I will get the same for the other side. So, after vacancy, maintenance, and capex, I am not doing so hot in the cash flow as I thought I would.

So potential house hackers, learn from my mistake. As I write this, tears are flowing on my key board (not really, but almost). 

@Caleb Heimsoth $263 per month

I think I figured it out...They are charging me for 4% for the whole property as well as 6% for the whole property. 

See below for the screenshots I took of my neighbors information from the tax accessors webiste verses mine. Look under "Land". (My neighbors is a duplex as well)

Neighbors Property:

My property:

I bought my duplex in November 2017. I moved in immediately. I bought the property from a distant landlord who was paying 6% Property tax which worked out to be $2,265.60 a year.

I filed for 4% property tax since this is my primary residence, I was denied the 4% on the entire property but was told I will have to pay 6% on the rental side and 4% for my side....This makes sense so I did not think anything of it... Well yesterday, I got a letter in the mail from my loan company, that said I had a escrow shortage and my payment was going up $263!!! I looked on the accessors website and my property taxable value has not changed. As you can imagine, I am really trying to find out what I am missing here. The increase is due to a "Property tax increase"....

Somethings not right...my property tax was supposed to go down, not up!

Anyone have any advice on what to do? I am going to call the accessors office to figure out whats going on, but does this sound wrong or am I missing something here? 

@Benjamin DuPont If you want to force appreciation quickly by renovating I would advise on focusing the remodel of the Kitchens and Bathrooms first. These are huge items appraisers look for. I am no appraiser but a close friend of mine is and he told me that for the same situation for my duplex.