The only way these could be good deals is if these were in a highly appreciating area. Or the values were really off.
Not to be mean but these are the type of deals a realtor sells to newbies.
I am no different than most others. I don’t want to be into a property rehab or rental for more than 80% of value. That means several hundred cash flow a month. You finds these deals from motivated sellers not taking on someone else’s problem.
On the other hand I probably would buy them myself though! And I am not a total rookie lol!
These are great deals if
A. You need a good write off on your taxes…
B. Like Bud said if these were in a highly appreciating area.
C. If you could redo the deal to put less cash out of pocket
D. If lease options are big where your at and you could cash flow them instead of loosing $.
These are just my thoughts on the deals by the way are these deals at all below market? And I also noticed that is was built in 2005 are these modular?Because I know some quick builders! No one I know is that quick though!
Have a great day and good luck on you decission! Robb
I am in a similar situation. The only difference with the property I’m looking at is the location. The home is in a brand new housing area in Las Vegas. The appreciation last year was just tremendous and led the country in appreciation. Here are my figures:
Are you sure taxes are $433/mo. on a $130k property? That’s 3.9% (over $5,100/year). You must not have personal income tax or something. I live in Montgomery County, MD, one of the most heavily taxes counties around an I only pay 1% of property value (that’s on new or old construction). Of course we have city, state, local and sales tax.
Like everyone else says, as long as you have appreciation going on - at least 8 to 10% or more - then I wouldn’t worry about some negative cash flow. I have negative cashflow on a property that’s going up $50,000/year in value so I don’t rationalize it as negative cashflow, I see it as $4,166/month of deferred income.
Yes, it’s a Texas size tax rate!! Amazing, isn’t it.
Still there should be good cash flow opportunities.
I don’t believe appreciation will be in the 10% range, maybe 3-6%.
Taxes on my first rental property, currently valued at $90,163, are $2,567.83. :eek: Got the statement in front of me right now. Welcome to Taxes – uhhh, I mean Texas.
Correct me if I am wrong but neither Texas nor Nevada have state income taxes…the money to run the state has to come from somewhere I guess.
I know that Nevada heavily taxes the visitors (high tax on hotel rooms, rental cars, etc.) – looks like both may tax real estate heavily.
I moved from Virginia where I was paying almost $5K per year for taxes on a large townhouse AND paying income tax on my salary AND paying personal property tax on my vehicles.
hi i have my eye on a property thats been vacant for some while now,the thing is i can’t find the owner to make him/her an offer is there any thing i can do to secure propety before it goes up for tax sale?could adverse possesion work in this case?
Contact the county, they always know where the mail is going. Adverse possession is squatting and not thought highly of around here could get you hurt… best of luck.
Adverse possesion takes YEARS! Like 10 or more and you would not be the smartest person around to invest time and money to maintain a property you don’t own for 10+ years.
Adverse possesion, when used with total hostile possesion, usually occurs with raw land in rural areas. I would not think it happens much at all if ever in urban areas ans the municipality would prolly find a reason to use the land in 10 years.
