Posts Tagged ‘rent’

property tax protests in austin tx travis county

August 22, 2011

Every year I protest my property tax valuations and almost every year it is time well spent. It allows me to learn something new about how my property is valued and what other property is valued at surrounding my property and is a general adventure in dealing with people.

So this year I started out with the commercial stuff. I sat down with the same guy that I talked to last year. He remembered that I had my son with me last year but this year I happened to have to go on his birthday so he did not come along (“his loss :)” just kidding son ). I asked for my property to be reduced about 15% from where the county had them appraised at. After showing him my p&l for the year he agreed to get me to a value about 7.5% lower then where the county was at. I decided that it was a good enough return and took his offer and our conversation was almost over. He began to work up the settlement and I began to pick his brain. Well it turns out that the county has produced some very important information which is used to determine property values.

One of those reports is a CAP RATE report for apartment transactions for the prior year. This report contains cap rates for sales that took place for the prior year catorgorized by the age of the complex. It can be used to determine value for your particular property and for those around you. Here is why I was surprised by the report: I was surprised because of how low the cap rates were! Or by how high the values were. For example there was a transaction on a building built in 1973 and it had a 7% cap rate. if you had a 20 unit building that was generating a 100K Net Operating Income you could in theory sell it for a prices of 100K/7%= $1,428,571.

Working backward:
If a unit was renting for about 675 per month with a 5% vacancy and the expenses averaged about 35% of revenue after the vacancy you generate a 100K net operating income.
For those of you who don’t know 7% is LOW. My first student loan interest rate was at 8%. I remember when FHA loans were are 8%. So for an older building to sell at a 7% Capitalization Rate is a really low number and a high value.
Say for example that 7% is a fluke and If you used a 8.5 rate the value would be 1,176,470 ! Which is still out of this world! I did not think that our market was that hot! Boy was I surprised!


I hit a telephone pole that’s why I can’t pay my rent

January 17, 2011

“I hit a telephone pole that’s why I can’t pay my rent. ”   Yep thats the latest excuse that I heard as to why the tenants could not pay thier rent.   They even attached the picture below…..

My advice to them was to follow Ron’s rules and things that make you a better landlord and investor: Rule# 235,876   Slow down and pay your rent in the mail!   

You never hear of the mail man hitting a telephone pole that’s why the rent did not get there on time. latest rent comparables website

August 18, 2010

I recently stumbled across a new website for comparing rents.   If you have rentals you should definately check it out.   I typed in some of my property and it did a decent job of pulling back comparables that allowed me to see how my rental property compares to others around me.   I am adding it to my checklist of things that I must do to stay on top of my property management duties.

By not knowing what other property owners are charging for similar properties you have the opportunity to have low rents.   Low rents effect your ability to attract quality residents and quality residents attract other quality residents and before you know it everyone is happier.

 I will let you be the judge of whether or not your residents are quality, but if you want to see what others are doing in the neighborhood please take a look at

Dont forget that is you need to sell a property to give me a call.   I am a licensed realtor and CCIM.   I dont just list property but I buy for my own portfolio.  Call me at 512-782-8982 or email me at

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