I am wondering if there is a way to make an upsidedown situation a deal. The owner owes about 25k more than the property was tax assesed for. I might of answered my own question. I should use the comps to determine value. But, what if the comps comeback less than what’s owed. How can I help this owner with this ans still mkae some kind of profit.
if he is behind you can try a short sale. if not, move on.
Do not use the tax assesment to determine the value of a property. Tax values are roughly 15-20% off because they do not go inside nor take into account the square footage, not even the comparables in the area. So really, the owner is not upside down.
Taxes are assessed differently WRT actual house value in different areas. DO NOT rely on the assessment at all. For example, we have a multi-family property in one state assessed for 18k, but worth 75k. We have houses in another state assessed for 40-50k that are really only worth 25-30k.
You need to determine actual value from sales of comparable homes in that area. There is no magical percentage of how far tax assessed values are off from actual value. It varies by area.