# El Paso?



## HendricksHearth (Jul 18, 2009)

I was just informed that I will be inheriting some small residential lots in El Paso, TX. I don't have the address or exact information, but I was told there is group of lots (maybe 5?) that are small- maybe 1/8th to 1/2 acre at most each. I was also told that taxes will be roughly $100/year. I don't know anything about the area (I live in GA), have never owned raw land before, and was hoping to get some help here from experienced folks. 

The transfer agent says that I can sell them for $1500 or that in a couple more years they may be worth as much as $4000 each as the city develops in the direction of the lots. Does that sound right to anyone familiar with the area?

Another thing, since they are residential lots, could I get caught with any other headaches later on? Like having to pay for lawn care to meet an ordinance or something like that? Trying to imagine worst case scenarios here so I know what all is involved. 

It is very hard for me to decide what to do as far as keeping or selling without at least trying to get more information. I have no use for that amount of land in that area and don't want to pick up a big pile of problems, but I don't want to sell it for peanuts either if it might be a bad move for my family. 

Thanks in advance for any help!

Lauren


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## fordy (Sep 13, 2003)

HendricksHearth said:


> I was just informed that I will be inheriting some small residential lots in El Paso, TX. I don't have the address or exact information, but I was told there is group of lots (maybe 5?) that are small- maybe 1/8th to 1/2 acre at most each. I was also told that taxes will be roughly $100/year. I don't know anything about the area (I live in GA), have never owned raw land before, and was hoping to get some help here from experienced folks.
> 
> The transfer agent says that I can sell them for $1500 or that in a couple more years they may be worth as much as $4000 each as the city develops in the direction of the lots. Does that sound right to anyone familiar with the area?
> 
> ...



................Looks like you're going to run everything by remote control ! See if you can spot them with Google earth , and ask the transfer agent about specific code compliance requirements , i.e. , are they outside of the city limits or inside ? 
................The basis for figuring your taxable gain when sold should BE very favorable . The estate adminstrator should have assigned them a stepped UP Basis somewhere around their current market value . Which means , you're not going too have much tax to pay on the sale . If , they look to increase in value you would be wise too hold onto them and see how well they are going too appreciate in value over time ! Someone in EP may give you the Bum's Rush wanting you to sell , "cause , they're not worth much" , so take your time and decide wisely . , fordy


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## HendricksHearth (Jul 18, 2009)

Thanks for the info! I don't have the addresses or anything yet, but my understanding is that they are inside El Paso in a residential area. Is there anything else I need to watch out for besides code compliance requirements? I literally have zero experience with owning raw land, let alone in another state that I've never been to. 

Thanks again!

Lauren


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## Newlife (May 27, 2012)

Well, in El Paso, you aren't going to have to worry too much about keeping the grass cut -- there just isn't enough rain to have much grass grow naturally 

On a more serious note, the biggest issue I can see is if it is actually located in a developed section of the city, you may be responsible for some minor maintenance (such as a sidewalk) or there could be liability issues if someone "trips and falls" while on your property because you were "negligent" in ensuring it was safe from such hazards. Yeah, never mind the trespassing issue; this is a sue-happy society.

As far as whether or not this place will be worth more money in the future is anyone's guess.

Not giving financial advice, but if I were in your shoes in a similar situation, and I knew I could get X amount of dollars immediately; then I would take a look at the time value of money. In other words, can I make better use of the funds (and a better return through paying off debt or making some other investment) or is it better to take a chance that at some vague point down the road, the carrying costs and future values (of a devalued currency + increased tax liabilities on "profit") would make holding it more attractive.

Let's say your taxes are $100/year and an umbrella policy to cover against those frivolous lawsuits runs you another $100/year. You hold for five years and sell the lot for $2K; but when you consider that you have spent $1,000 over that period of time just holding it, you are only "making" $1,000. Then you have to take taxes out and realize that the money you get in the future may not be as valuable as it is today.

One thing you could do is contact the county assessors office to find out where these parcels are located. Do a little online research to see if it is actually in the path of any type of development; then contact a couple of realtors who have listings in the area to get their assessment/market analysis on the property.

But, yeah, the previous advice that you may be getting low-balled info might be correct. The county assessor can look up the property (they may actually have this online) and you can get a better idea.

Hope this helps.


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## beowoulf90 (Jan 13, 2004)

HendricksHearth said:


> I was just informed that I will be inheriting some small residential lots in El Paso, TX. I don't have the address or exact information, but I was told there is group of lots (maybe 5?) that are small- maybe 1/8th to 1/2 acre at most each. I was also told that taxes will be roughly $100/year. I don't know anything about the area (I live in GA), have never owned raw land before, and was hoping to get some help here from experienced folks.
> 
> The transfer agent says that I can sell them for $1500 or that in a couple more years they may be worth as much as $4000 each as the city develops in the direction of the lots. Does that sound right to anyone familiar with the area?
> 
> ...


Well first off, grass? yea right! Now it's been 30 years since we lived there, but there wasn't much grass then.. 

I would check the locations of the property(s) because there was and always will be land for sale that has no access to water or electric. They would hype it and sell it to the unwary buyers.. In this case location is everything.. If it is east of the city you may not have much expansion, since that is where Fort Bliss and the El Paso international airport are located..
If it is north east / north of the city, you might have a chance of expansion.
Same for the west/ north west..
There will be no expansion south, since you would be in Mexico...

Also note that El Paso sits like a horseshoe at the base of the Franklin Mountains. IIRC it's about 45 miles from NE El Paso to NW El Paso by following the city. I know that when we lived there, there was only one road across the mountains (Trans mountain Road) and it would be closed if high winds or snow were present on the mountain..

As I said this was 30 years ago.
I've also heard that the crime has expanded since then.


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## HendricksHearth (Jul 18, 2009)

LOL, I guess the grass comment gave away how little I actually know about El Paso. 

That said, thank you all so much for the great info! I requested the exact addresses of the lots and told the agent that I need to do more research before I make a decision. I'll post back here when I have some specifics and I need to check out the ordinances and such, too.

Thank you again!

Lauren


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## Newlife (May 27, 2012)

Good luck


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## tarbe (Apr 7, 2007)

Find out what comparable properties in the same neighborhood have sold for in the past year. 

Those comps ought to give you an idea of what your ground is worth. A Realtor or Appraiser can help you with that.


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## HendricksHearth (Jul 18, 2009)

Thanks so much for the info. I was able to get some more property data today. They are located in Horizons Estates on the eastside of El Paso from what I was told. The lots are around 1/4 acre and were appraised on the tax sheet for around $250 each. My understanding is that it is still undeveloped there, likely not even access to water possibly. I found a list online of complaints about the lots from other people that inherited and can't sell now. They said it was a scam in the 1970's and supposedly was going to be worth a ton as an investment that never panned out. The posts also said there was a law passed in the nineties that prevents people from selling that land without access to utilities and water access? Does anyone know anything about this?

It is starting to sound like I may have inherited a big headache. 

Thanks so much for any help,

Lauren


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## Bluesgal (Jun 17, 2011)

you might find this interesting, it's from 2007 but it provides some background on the situation there and a map.

http://www.horizoncommunities.com/newsletters/HCIA_Newsletter_Summer2007.pdf


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## fordy (Sep 13, 2003)

HendricksHearth said:


> Thanks so much for the info. I was able to get some more property data today. They are located in Horizons Estates on the eastside of El Paso from what I was told. The lots are around 1/4 acre and were appraised on the tax sheet for around $250 each. My understanding is that it is still undeveloped there, likely not even access to water possibly. I found a list online of complaints about the lots from other people that inherited and can't sell now. They said it was a scam in the 1970's and supposedly was going to be worth a ton as an investment that never panned out. The posts also said there was a law passed in the nineties that prevents people from selling that land without access to utilities and water access? Does anyone know anything about this?
> 
> It is starting to sound like I may have inherited a big headache.
> 
> ...



..................So , you can't sell BUT , what about a Donation too some local charity in El Paso ? The charity won't have too pay yearly property tax levies and can simply hold it until it becomes marketable and you can take a tax deduction on your next tax return . , fordy:bowtie:


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## DryHeat (Nov 11, 2010)

I would second the earlier suggestion to use Google Earth (borrow use of a PC if yours doesn't have it working).. go to the address or just locate that "subdivision" then see where the nearest is that you can drag the little "standing fellow" icon from the upper right above the size enlarge/reduce scale to. Then "look around" 360. If Google had their photo van run by anywhere near the place you'll get a great sense of "location location." My guess is that it's something rather like out of "Rango" (the cartoon movie last year). I've been through and stayed in El Paso a number of times but mostly in the 70s and 80s. Very, very, dry, dusty, rundown, and dilapidated. My most vivid and surreal memory is of, while I was sitting in one of said dusty motel/hotel lobbies reading one of their loaner paperbacks, having a teenage girl run by me gasping "No no oh oh" quickly followed and grabbed by a gentleman sporting metal hooks on both arms rather than hands. The desk clerk leaned over and said "Waaal, must be one of those runaways parents hire ol' Jay J Armes there to corral before they get busted for dope dealing or something..."


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## HendricksHearth (Jul 18, 2009)

Hi again,

Oh that 2007 document actually helped me find the exact lots more than the property info I was given did- thank you so much! 

I also downloaded Google Earth today and put Ascension Blvd. in as it is the closest road to the lot. I haven't seen Rango, but the whole area looks like a scrubby, desolate wasteland! I don't know anything about that part of TX, but it looks very much like it has no utility or water access. I wouldn't want to have my car break down there. :/ In fact the whole area looks completely undeveloped for a long ways until you get back towards city limits again (it is outside the city) and I didn't see any farms, homesteads or any other signs of habitation, either. 

I actually was looking into donating it, but from the other complaints I was reading about regarding Horizon City Estates, even the charities don't want those lots. The transfer agent says they can get $1500/lot- maybe I should tell them to go for it? 

I really wish I could talk to the family members that passed and asked them about it. They were always very practical and did their research before investing in real estate, but I just can't understand this one yet. 

Thanks for the help- this forum is the best!

Lauren


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## Catalytic (Sep 15, 2010)

Hi Lauren,

Don't know if I can be of any help, because I'm not at all familiar with El Paso, BUT...I'm moving there in July. I would be happy to go hunt down the properties and take photos for you, and scope out if anything else is in the area. If you want me to do that, send me a PM. Would prolly be sometime in August before I could actually get it done.


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## Bandit (Oct 5, 2008)

It doesn't look to promising after a little Googling
Horizon Estates -- Failed Development
From City-Data
Horizon City TX (El Paso: appointed, for sale, houses) - City-Data Forum
Any info on Horizon City out there??? - Topix
Bandit
Ps
I have read about it before when following a link about Terlingua Ranch


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## PaulNKS (Jan 11, 2009)

If you can't sell them or give them to charity, why spend the $250 each on 5 lots per year in taxes? Just don't pay the taxes. The land will then eventually be auctioned off for back taxes and you'll be off the hook.

El Paso is a dirty, dry, town with nothing but sand. It's nothing more than desolate desert and I can't imagine growth in El Paso, other than the military or Mexican imigrants.


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## HendricksHearth (Jul 18, 2009)

Thank you all so much for the information! I agree that it sounds like I don't want to hang onto the lots. Those links confirm that. It sounds like my family members must have invested back in the 70's when folks were saying it would be valuable as El Paso expanded when the reality is that there are little resources and even now the area hasn't really developed any at all. 

Catalytic, I really appreciate the offer of photos! I don't think it will be necessary, but I will keep it in mind later on if something changes.

Again, thanks so much for everything all of you- I'm really, really thankful. 

Lauren


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