Posted by Bill K. (AZ) on March 14, 1999 at 14:35:21:
I, myself, haven’t done any L/O’s yet, but I’m working on getting some. I have found that county tax records are NOT a good source of determining FMV. You can use them as a coarse gauge of value, but the tax collector can’t possibly perform accurate analyses on all homes in their county. They don’t have the manpower. In addition, their motivation for placing value is different than that between a willing buyer and seller.
Without an appraisal, it becomes incumbent upon you to know your market. Bottom line: Do you believe that a tenant/buyer will pay you more for the property than you purchased it for?
As an aside, your seller doesn’t sound very motivated. If you decide to purchase for mid-to-upper market analysis, try to get the seller to carry a note for part of the purchase price and see if you can get at least a 2-year lease.
I hope this helps. Good luck.
Bill K. (AZ)