Escrow closed on this property on Monday, so hard money loan #15 was paid off. Looking for another place to invest now.
The January financials for the apartment have arrived and, as we expected, things continue to improve. Occupancy increased to 93%, up from 88% in December. Revenue increased by $5,000 and management expects the same increase for February. Our property tax impound amount will drop by about $8,000 per month with the March payment following our successful property tax valuation appeal last August. The property still lost money in January, but occupancy is heading up and expenses are heading down, so we are moving in the right direction. For January, our budget called for an $8,500 loss and our actual loss was closer to $11,500, so we are $3,000 off of our budget. If trends continue, we should be looking good for February.
Wednesday, March 02, 2011
HML #15 Closed And Apartment January Financials.
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2 comments:
Hey there Shuan,
Just started reading your blog a few weeks ago. Started from 2004 and am now in 2006. Thanks for helping people like myself.
Can you tell me how you went about appealing for a different property valuation? Was it all paperwork or did you have to make a case in front of an official?
Thanks
I didn't personally do it - our management company did. The process probably varies by state and county. I know every 2 years, which is how often properties are valued in Arizona, I get a postcard from the county assessor telling me what the valuation of my property is. The postcard always gives instructions on how to appeal the valuation. I believe in my county it can all be done via paperwork but you can request a personal meeting with the assessor if you want. As for what to present, you need to show how you are deriving your value of the property. In my county, you can use market-values, which would include comps from nearby similar properties, or a cost-basis, which would be how much it would cost to build the property, including land costs. Details for Maricopa county can be found at http://www.maricopa.gov/assessor/PropertyValueAppeals.aspx. Click the link for the Residential Petition For Review of Valuation for more info on how to go about appealing the valuation. Again, your local assessor may have different requirements.
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