My Beef With Flippers (taxes, free, figure)

[PghYinzer]

This one is nicely done with just enough updates but still keeping the layout of the older home. This one sold in 5 days for 200k in Brookline. That never used to happen, even a year or two ago. The 4th bedroom is the attic, and the 2nd bathroom is in the unfinished basement. Good luck with that 4th bedroom in the winter/summer, as it seems like it only has one HVAC vent. That will definitely require a window AC unit and a space heater.

https://www.coldwellbankerhomes.com/.../pid_21745376/

[ferraris]

Originally Posted by PghYinzer

Good luck with that 4th bedroom in the winter/summer, as it seems like it only has one HVAC vent. That will definitely require a window AC unit and a space heater.

Hopefully the outlets up there are grounded and on their own circuit.

[svband76]

Originally Posted by Doowlle34

Getting back to that original listing, I am surprised to see that it is already contingent! I thought that was pretty aggressively priced for a 3 bedroom, and I have seen aggressively priced Dormont flips sit for awhile. For example, this house:


https://www.zillow.com/homes/for_sal...omePageTab=buy


it would be hard to stomach the prospect of $7,000 or more a year in property/school tax burden for that 3 bedroom on Tolma.

The taxes would never be that high for that property. About 50% of that. $7,000 is more like Squirrel Hill.

[chao]

Originally Posted by Doowlle34

Getting back to that original listing, I am surprised to see that it is already contingent! I thought that was pretty aggressively priced for a 3 bedroom, and I have seen aggressively priced Dormont flips sit for awhile. For example, this house:


https://www.zillow.com/homes/for_sal...omePageTab=buy


was priced pretty aggressively back in November, and at least according to Zillow, the listing was removed in late December -- although I guess I'm not certain that this didn't sell (I assumed it didn't sell and was removed so it can be re-listed as "new" in a month or so).


I think someone did raise a good point about Dormont taxes a few pages back -- it would be hard to stomach the prospect of $7,000 or more a year in property/school tax burden for that 3 bedroom on Tolma. I also took a quick look at the current $250k and under market in Mt. Lebanon, and you can definitely get the same amount of space for equal (or less) money in Lebo -- although without the HGTv finishes. That said, the Tolma home is very convenient for T access, as well as the Beverly and Washington Road commercial districts.

i might be in denial, but i still cant see 3bd 1bath 250k house in Dormont being a normal thing, dont matter how well it's being fixed. maybe realtor sold to someone coming from California and doesnt know Pittsburgh housing very much. maybe the agreed priced is way less than 250k, like 210k maybe.

A move in ready 2bedrooms 1bath house that only need repaint only cost me 53k and 3k in renovate in 2015, and in 2016 i've seem two 3 bedroom 1bath house on pioneer ave each sold for less than 70k, and all it need are cosmetic works.

[Goinback2011]

I looked at a house in Dormont that had never been updated since it was constructed in 1920. Knob and tube wiring, original oak floors, unpainted woodwork, tiny kitchen, original tub without shower, all original bath fixtures, 3 bds, leaky porch roof, no garage, ancient furnace, and the only other appliance in the cellar was a functional, hand cranked wringer washer in pristine condition. It sold for 69k in 2013 and resold completely redone for 210k in 2015.

https://www.zillow.com/homedetails/3...11655721_zpid/

[Doowlle34]

That Wainbell property is definitely more of what I recalled, in terms of pricing, for the rehabbed 3 bedrooms -- i.e., low 200s, not 250. However, that was three years ago, so perhaps prices have continued to rise. Of course, as someone pointed out, the selling price could be much lower than asking; however, it went under contract so quickly, I thought it may have went for close to asking -- or at least in the 90 - 93 percent range.


On taxes, I'm sad to say that -- if those purchasers pay 225k - 230k, they will (almost certainly) get a letter from the school district advising them that their assessment is going up to an amount that will be equal to the purchase price, although as reduced by whatever common level ratio is in effect for 2018. So, for example, the Wainbell property was purchased in 2015 for 210k, when the common level ration was .92% -- so they got reassessed at 193k. And, in Dormont (someone can do the exact math), this results in a tax burden of almost $6,000. So, if the Tolma purchasers pay significantly more, and depending on the common level ratio in 2018, I think their tax burden will be close to $7,000.

[WhoIsStanwix?]

Originally Posted by zalewskimm

The taxes would never be that high for that property. About 50% of that. $7,000 is more like Squirrel Hill.

You are horribly misinformed on property taxes. For an equal $250k sale price and assuming both homes are reassessed shortly after purchase, property tax in Dormont is roughly 50% higher than in the City of Pittsburgh. Dormont has higher municipal property tax than almost any other municipality in Allegheny County.

[PreservationPioneer]

Originally Posted by Goinback2011

I looked at a house in Dormont that had never been updated since it was constructed in 1920. Knob and tube wiring, original oak floors, unpainted woodwork, tiny kitchen, original tub without shower, all original bath fixtures, 3 bds, leaky porch roof, no garage, ancient furnace, and the only other appliance in the cellar was a functional, hand cranked wringer washer in pristine condition. It sold for 69k in 2013 and resold completely redone for 210k in 2015.

https://www.zillow.com/homedetails/3...11655721_zpid/

So unpainted woodwork and oak floors are a bad thing? The flipper painted the woodwork and put new flooring down.

[Paul2421]

Originally Posted by WhoIsStanwix?

You are horribly misinformed on property taxes. For an equal $250k sale price and assuming both homes are reassessed shortly after purchase, property tax in Dormont is roughly 50% higher than in the City of Pittsburgh. Dormont has higher municipal property tax than almost any other municipality in Allegheny County.

the poster lives in dormont and probably bought 50 years ago. overall people are very misinformed about taxes in general though.

[Goinback2011]

Originally Posted by PreservationPioneer

So unpainted woodwork and oak floors are a bad thing? The flipper painted the woodwork and put new flooring down.

Who said it was a bad thing? I was listing what I observed in original features.

If I had been 10 years younger, I would have bought that house in its original condition. Although the wiring would have given me pause.