I have one of the units pre-rented for $650 already and I have four weeks of rehab left. No more surprises from here. I will post link to pictures when completed.
Pre-rented…Good Job!
Terrific, Brockovich!
Someday tell us how you got started investing in real estate–your worst investment story and how you learned. You’ve already told us your best!
Furnishedowner
Wow, that is awesome. I have only purchased 1 property so far, but if could run across some deals like those I would have a few more properties.
City pre-approved my CRA application. Rehab is completed. One unit rented, will be turning in the expense reports and receipts to complete the CRA requirements on Monday. Should be able to lower the insurance premium now that I will have it occupied. Turned out beautifully. Next year I will dispute the tax record and put a parking lot in through an easement of another property I already own. The plan is to keep this one long-term and most likely I will re-finance it at some point.
Where are your properties located???
North of Dayton Ohio
Just an update on the purchase of the 5K property discussed in this story. I challenged the tax assessment with the county earlier this year and I just got word that they ruled in my favor. The new assessment is for the purchase price of 5K. So my tax bill will be $75 per year instead of almost $1000. And with the CRA it is now locked at that amount for 12 years. Best of all, both units are rented and producing $1100 of rental income per month. You gotta love this business.
$75 a year for property taxes…hard to even imagine here in NJ. My properties are each worth around $180K - $200K and the property taxes on each are over $4000/year.
Unfortunately, most NJ citizens seem to think this is normal and necessary but my opinion is that we’re paying $2000 in property taxes and $2000 in the “NJ Corruption Tax”
jmd_forest
JMD, you think that is bad…our house we live in is assessed at 117,000 and we pay taxes of over $4000 per year when you add up the state,county,town and village taxes…there is a huge movement in this area to get rid of all villages—they were created in the 1800’s and were needed back then, but are virtually useless now and exist to steal money from taxpayers that could go to the town instead at a fraction of the rate. Do we really need to pay our own village police force who drive around and have nothing to do but break up domestic disputes every now and then??
matter,
I agree with your sentiments regarding overtaxation and being “over serviced” by the police and other wastefully administered municipal services. According to my discussions with a retired police officer, one of our tiny (2 sq mile) local towns has its own police force of 26 that are constantly complaining about funds needed for radios, police cars, etc. I say just stand one officer at each intersection in the town and they easily could just yell to each other and still have a few officers left over.
However, in NJ the assessed value and the market value are so skewed that the assessed value tells you very little about what the property might be worth. In one town with an assessment ration of 1:1 the assessed value of $117K means the property MV is pretty close to $117K. In the next town over, the assessment ration might be 1:3 and a property with an assessed value of $117K might be worth closer to $350K. In my opinion, even a a MV of $350K does not warrant an annual property tax bill of $4K.
My personal residence is worth around $400K (nice but not particularly special for this part of NJ) and the annual property taxes are over $8K. My wife and I are seriously considering moving out of NJ to a state with a lower tax burden.