2 Family Tax Lien Help...
I have received a phone call from a Sewer Authority about a past due http://www.bill.Now i will explain fast: this call wasn't for me it was dial wrong but i got the information anyway.
Sewer bill is over due and they trying to collect,if don't get pay it will be going to what they call auction.
So now i have info from the house and the bill is $424.00 http://www.only.This could be a great http://www.deal. .This house is a multy family house,2 blocks from the beach.Very good location , rentals are good http://www.too.This place is a good money maker.
They said that if i purchase this lien that i could foreclose this
Is it THRU and how that works.Any help or advise will help.
Thank you all ... :-?
You will have to look up your state and county laws, and I wouldnt advise it without counsel.
Here in Florida you can foreclose on the property for utility bills, but the existing mortgages dont go away immediately. There are other steps that have to be taken in court, and during that process you can be bought out by the landowner for the bill amount, legal fees, and interest. It can be stalled out as long as 2 additional years or best case scenario just under 90 days.
Good Luck,
Kyle
Having owned a number of buildings in the "bad" part of town I can say, without reservation, it was not worth the time and money I put into it. The amount of time it took to keep the units in compliance with city ordinance coupled to the almost destructive nature of the tenant base killed all interest this area. If you are doing section 8 go to the housing authority and get their occupancy inspection criteria.
lthw :-(
I have done it in Florida and the percentages of profit are much higher than the nicer places. It is more of a headache due to the violence and high turnover of tenants. But if you keep up with it and dont slack off, it can make you a higher profit than the "pride of Ownership" type of properties. I hired bouncers in the past to run mine, and had great success. I have seen others dwindled down to poverty though trying to run it themselves.
If you do decide on it, I would strongly suggest going section 8 as the rents will be higher, and you are guaranteed payment and deposit. Also make sure that you dont spend anymore than the amount of deposit you will get rehabbing the unit.
In Florida if we rented weekly and/or daily we could get a hotel/motel license and have a 24 hour eviction which came in handy. The downside is that we were charged extra taxes on monies earned and the fire codes were more stringent.
I also found late in the game that by going to the local churches, Red Cross, etc etc you could get a better class of lower income tenants, that usually wouldnt tear up the place too bad.
Also dont forget that you will have a very hard time selling it unless it is fully filled, and you have financials that can be documented by an accountant, or bank statements, at least a years worth.
Good Luck,
Kyle