Quick Question on Estimating Property Taxes in Indy
Hey everyone, I’m running numbers on single family rentals in Marion County and trying to figure out the best way to estimate property taxes.
From what I understand, rentals (non-homestead) are capped at 2% of assessed value, and after a sale the assessed value could go up but not always right away. The assessor site doesn’t let you run “what if” scenarios.
Right now I’ve been taking the current assessed value, bumping it up ~12% (since that’s the average increase across Indiana this past year), and then multiplying by 2% to get a tax estimate.
Do you all think that’s a solid way to underwrite? Or do most of you just assume taxes will reset closer to the purchase price?
Thanks for any advice!