All Forum Posts by: Tchaka Owen

@Ryan Roesch - yes, they are supposed to remove it at 78% however I do not know the repercussion for them not doing so. There are different dbases of info and I can understand it not being removed for a year or two, however if this home is in C'ville, it's skeptical that they didn't detect it. The good news is that there's a terrific law school there and a few attorneys who remained in town. Call one. If you don't know any, I'm a Hoo and one of my good friends practices there (though not RE) and he'll guide you. Good luck!

@Nancy Moustafa - to better help us, you should provide numbers. For example, how much are the properties, how much will one rent for and also where is this? Landlord-tenant laws are different in VA than in MD.

The good news is that in the DC area, most tenants are good. The economy is strong and you tend to find responsible people with good credit. People working in sensitive areas of the federal govt cannot get blemishes so they'll be good tenants. The bad side is that homes are very expensive there (I'm from Arlington and have seen the increase in prices).

Also, it is my opinion that you are better off having a 2nd house rented out and having someone help you than if you didn't. An important thing to do is to set aside money for emergencies....whether repairs or a month or two with vacancies. Also, when you do get a tenant, don't use all of the rent for yourself. Make sure that every month you set aside a percentage for vacancies, maintenance and capital expenditures. Everyone is different, if you put aside 20% for starters, that's ok. Zero is not ok. 

@Jake Walroth - you wrote: 

And like most other Midwestern towns(Pittsburgh, Indy, ETC), there is an urban renaissance taking place...while all the babyboomers moved to the suburbs, you're seeing the inverse with more millenials favoring the urban lifestyle. While most deals to be had are on the periphery of the urban core... you can still buy cashflowing deals in many areas in the "path of appreciation."

Good stuff! There's been a lot of movement into Indy and some buildup in Cleveland, I've been waiting to hear about Cincy. Considered it some years back however I was deterred by a friend from there, she gave me the rundown of crime and it sounded more headache than beneficial. Glad to see things are looking up.

@Robert Ellis - there's a top 5 public university in Columbus? 

@Jesse Allen - what @Joe Villeneuve said. Share real numbers with us and that will go a long way towards giving beneficial feedback.

@Brad Hunter - welcome to BP! A few of my friends bought in Del Ray.....in the early 2000s. That's well before Del Ray was published as one of the coolest places to live in America. Yeah, I know what you're thinking! :-D

You'll love BP. I learn something each time I log on.  

 No you don't. You have someone with a law degree posing as a competent attorney. Fire him and get one who will get the job done. Good luck!

This might be your answer. Get a duplex (or both) needing repairs with hard money. Upon improvement, refinance into conventional (assuming you have the equity). It's BRRRR at its finest.

@Rosanne Avila - what Greg said. He's spot on!

@Greg Dickerson - off topic: I flew to Minneapolis two weeks ago today, I'm still high from the game!

@Fernando Ramirez - is there a reason you do not have a line of credit on your primary home? 

You likely have some stress wondering about your savings being tied up in an investment home and the money you'll owe family members. Because of that, I'm leaning towards agreeing with @Jason D.….flip it and take your cash.

If you can get a HELOC fast OR if you are able to refinance the home and pay everyone back, BRRR is easily the way to go - particularly because I suspect fair market rent is probably closer to $1200/mo. Renters will pay your mortgage and put a few hunerd dollars in your pocket each month. Good luck!

@David Hedges - there isn't a tax discrepancy. Indiana pays property taxes in arrears so the seller paid you for the 11 of the 12 months in 2018 that they owned it. That way, although you're paying the entire amount, you're being credited for the time that the home wasn't yours. Indiana has apparently adjusted (likely based on your sales price) for 2019 and at the end of the year, you'll owe that higher amount.

Four questions you should ask the settlement company (not necessarily your agent):

1. It appears that taxes are paid semi-annually in IN, so what's the reason it's all on you?

2. Second payment's due Nov 10th, so what's the reason it wasn't paid? And if there were penalties, did you have to pay? (you shouldn't)

3. Did IN not yet provide any indication of what 2019 taxes would be? 

4. What's the reason for the large jump?

@Bill B. - many states pay in arrears.