All Forum Posts by: Account Closed

Hi @Jason Malabute

Thanks — I agree with you. Since each state and county has its own set of rules and tax codes, it’s always best to check things early. That way, we avoid surprises down the line.

Hi @Victor Valencia,

Great questions. This is a common tough spot for California investors. (Disclaimer: I am not a financial advisor, CPA, or attorney. This is for informational purposes only. Please consult a qualified professional before making any decisions.)

1. DSCR Loan in Your Dad's Name: Can it be done?
Yes, but it's challenging. His age and retirement status are hurdles. Your best shot is with a refinance (not a purchase loan). Be prepared to personally guarantee the loan. You must shop around and be upfront with lenders—some will say no, but others may work with a strong guarantor and a solid property.

2. The Core Trade-Off: Now vs. Later
This is the real decision.

• Wait for Inheritance: This is the best long-term wealth move. You get a massive step-up in basis and avoid the property tax hike. The cost? You can't use the equity to grow your portfolio now.
• Transfer Now: This is a wealth creation move. You accept a known cost (~$1,400+/yr taxes + your dad's tax bill) to get capital today. If you can reinvest that cash into another profitable deal, the gains could far outweigh the added costs.

My Practical Advice:
Start by trying for the DSCR loan in your dad's name. If you succeed, you get the capital without the tax headaches. If lenders say no, then you have a clear choice: is accessing the equity now worth the extra annual cost and tax hit to scale your business?

Talk to a few DSCR lenders immediately—their answers will tell you what your real options are.

Good luck.

Hi Victor,

Here's the core issue you're facing, focused on your biggest question: Property Tax and Prop 19.

The Short Answer: Yes, the property will be reassessed, and your taxes will jump from ~$1,200 to ~$2,600 per year. There is no way around this for a rental property.

Why?

• Prop 19 eliminated the old parent-child exclusion for rental properties. The exclusion now only applies to a primary residence.
• It doesn't matter if it's a gift or a sale—both trigger a "change in ownership."
• LLC strategies (transferring property into an LLC, then LLC membership) do not work and will still trigger a full reassessment. The county assessor is very good at finding these transfers.

What this means for you:
This property tax increase is a permanent, annual cost. Your primary trade-off is now clear:

1. Access Equity Now: Accept the $1,400/yr tax increase and the other tax consequences (like your dad's depreciation recapture bill) to get the DSCR loan now.
2. Maximize Future Wealth: Leave the property in your dad's name, avoid the tax hike, and preserve the massive benefit of a stepped-up basis upon inheritance.

The other tax questions (gift tax, depreciation, etc.) are important, but they are secondary to this fundamental Prop 19 reality.

My immediate advice is to model whether the deal still makes financial sense with the higher property tax expense. If not, the most profitable path is likely to manage the property for your dad now and plan for the long term.

Hi Everyone,

Property taxes can be one of the biggest yearly expenses for both homeowners and real estate investors. If your property is over-assessed, you might be paying more than necessary. Here’s a breakdown of how property tax appeals typically work and what to consider.

1. What is a Property Tax Appeal?

A property tax appeal is a formal request to your county or appraisal district to review your property’s assessed value. If evidence shows your property has been overvalued, the county may lower your assessment, reducing your taxes.

2. When Should You File?

• Texas: Appeals usually follow April/May notices, with deadlines around mid-May.

• Other states: Deadlines vary, so always check your local appraisal district rules.

Missed the deadline? Some counties accept “good cause” letters, but acceptance is at the county’s discretion.

3. Evidence to Gather

To strengthen your appeal, consider:

• Comparable sales from the last 6–12 months of similar properties.

• Property record accuracy (square footage, garage, pool, additions).

• Photos showing property condition or issues.

• Income/expense analysis for rental or commercial properties.

• Exemption checks (homestead, veteran, senior, etc.).

• Optional expert reports for high-value or complex cases.

4. Filing & Hearing Process

1. Submit your appeal and supporting documents before the deadline.

2. County may adjust immediately or schedule a hearing.

3. Attend hearing to present evidence clearly.

4. County sends a decision letter with the updated assessment and bill.

5. Common Mistakes

• Missing deadlines.

• Submitting weak or unclear evidence.

• Forgetting applicable exemptions.

• DIY filings without checking county-specific rules.

6. State Differences

• Texas: Sales data is often limited, so appeals rely more on equity, income, and cost approaches.

• California: Full disclosure allows combining comps and income analysis, but rules are stricter.

Discussion:

Have you recently filed a property tax appeal in your county? What strategies worked, and what challenges did you face?

Hi @John S Lewis,

Congratulations on the purchase of your 6-unit building. You've come to the right place for property tax help.

For your Burlington County, NJ property, here’s the key information:

The annual deadline to file a formal appeal was April 1, 2025. Since you purchased in March, it's likely that window has closed for this tax year. Your purchase price probably became the new assessed value for the 2025 tax year.

The best course of action is to plan ahead for the 2026 appeal. The next deadline will be April 1, 2026, based on the property's value as of January 1, 2026.

For a 6-unit building, building a strong case involves a detailed income approach analysis (using your rent rolls and expenses) alongside comparable sales, which is my specialty.

Please feel free to reach out to me in January or February 2026, and I would be glad to help you prepare and file a comprehensive appeal to potentially reduce your tax burden for the following year.

Good luck with the new property!

Best,
Siva
Founder, AnarchiSys | U.S. Property Tax & Title Research

Investment Info:

Other other investment.

Purchase price: $2,400,000

Delivered tax assessment review, municipal lien research, and title status verification that supported the successful closing of a $2.4M commercial property in Houston. My role was focused on providing the back-end due diligence so the investor and title company could move to closing without county delays or surprises.

What made you interested in investing in this type of deal?

Although I wasn’t the buyer, I specialize in supporting investors in commercial transactions. This project allowed me to apply my expertise in property tax appeals and municipal lien research to a high-value deal.

How did you add value to the deal?

By flagging outdated tax assessments and verifying a clean lien status, I helped streamline the closing process and reduce the risk of post-closing issues.

What was the outcome?

The property closed smoothly, with the investor avoiding potential reassessment penalties and follow-up costs.

Lessons learned? Challenges?

Every county handles data differently. Houston required multiple record verifications, which reinforced the importance of triple-checking data sources before delivering reports to clients.