Newbie Question - Posted by Tammi
Posted by Tammi on March 12, 2000 at 16:53:52:
Here’s a question regarding a friend’s deal. I have just started learning about rei, and am very excited about all of the possibilites, but want to gain more knowledge before I “venture in.” I don’t think my friend has too much experience, either, in fact I think this is the first deal for her. She found the info. on a house owing back taxes (I think) by going to the courthouse, she doesn’t live here, so the house is four hours from the city she lives in. Here’s the deal: she received the deed for a house by paying the owner $300 to move out(she physically helped him) and apparently he owes app. $13,000. in back taxes. The property is appraised at around $30,000. which is comparable to others in the area, needs around 2,000. in repairs from what I understand. My question is, if she repairs it, can she then rent out the property before paying the taxes? Is this illegal or a bad way to do business (seems like it to me). She isn’t sure what direction to go, if she decides to sell will a mortgage company finance the house and pay off the taxes at the same time? Or does she have to pay them first and then apply for a loan? Hope this question wasn’t too cloudy, as you can probably tell I am new to this and was hoping to get some clarification. By the way, this is such a great place to learn, and I have received good advice on some books, which are on order! Thanks so much for any help.