How Do I Find What Tax Rates Are In Specific Locations?
I am going to buy an investment property in San Dimas, California.
Is there an online source of information that specifies tax rates for that area?
Also, how can I find out what the average appreciation rates are in this area?
Thanks for the advice!
Semper Fi, Mike
Thanks for the input!
Anyone else have anything to add?
You never know what life is going to throw at you so I would carefully evaluate how much negative cashflow you want to have. Perhaps it makes sense to put a little more money down for principal so that your monthly payments are not so lopsided with what the fmaily member can afford.
Just to add, you always want to be careful when "helping" family members, life is too short to make a good relationship bad due to business deals gone awry.
GL
Hey,
Now the flip side...
This is NOT a good business plan on several different levels:
1) You can NOT count on long term appreciation to generate returns. Just because an area has had 10 years of 15% gains, does not mean that will continue.
2) Long terms rentals need to generate positive cash flow from day one. So many things can change your financial situation in one year, let alone 5-7 years, that you can not develop a working model where you are kicking in money each month.
3) Helping out relatives, or friends, is a great idea but terrible business.
4) Having a "handyman" in a rental looks so good on paper, but rarely works out.
I would recommend a slightly different approach. Buy a multi-unit (2, 3 or 4) and have the relative live in one unit and manage the other units. You would offer a discounted rent to them for his services. This would create an employee relationship. You could generate positive cash flow and still help.