Residential or Commercial

[Tiffany Gibbons]

Thank you! That's what I thought, but recently there has been some talk about this issue...

My county Assessor, (Rutherford) Rob Mitchell, has confirmed that about 10% of all single family housing in our county (and it's a big county, right outside Nashville) is owned by out of town REITs. He's written articles and done interviews on the subject multiple times. Unfortunately, his hands are tied with the TCA. These investors also file multiple frivolous appeals (hundreds of properties at once) to get their assessments lowered, tying up county employees that could be helping actual customers that live and work here.

 

[Zoe]

I'm a university professor researching institutional investors and their impacts on communities. In my region, some folks want to tax single-family investors who own X number of properties (it's hard to define the X) as commercial enterprises--like short-term rental owners. Keep in mind, in places like Atlanta, Tampa, Charlotte, Nashville, and other growing southern/sunbelt communities, these companies own huge portfolios of homes. In some neighborhoods, they own up to 50% of all homes. In such communities, calls for regulation are growing. One of the many "regulations" talked about is taxing such owners as commercial (thousands of property tax bills are sent to one address).

That's good. I hope you find answers. Memphis is big on foreign investors. It does concern me.

 

[Zoe]

What courses do you teach at the university? You don't have to answer. Are your students helping you on the research?

I wish you well. I think your on a good mission.

 

[Fernando]

If I wasn't an appraiser, I would have loved to work for such large firm in finding suitable profitable properties to buy as investments.
As an analysis, I would consider cap rates, future potential increases, and political and bureaucratic landscape in determining properties to buy throughout US.
Many firms with big capital already buy multiunit buildings. Yet, SFRs are more profitable and more in demand thus more liquid.

 

[sputnam]

If your assignment is to appraise the current market value of the fee simple interest in real property, it doesn't matter who owns it... or who the borrower is. Both are reporting requirements but, neither one has an impact on your analyses or value conclusions.