Higher property taxes in Indiana as a non owner occupied

[Guy Laclair]

Was looking at buying an investment property near Indianapolis and just discovered something huge. The property taxes are reduced for primary residence 3 different ways. 1. If you have a mortgage you get a tax break 2. Supplemental (not sure what that is for) 3. Homestead A property valued at $106,500 with all of it's tax reductions in place will be taxed as is the house value is $36,975. The tax rate is 0.025798. So a primary resident is taxed $909 while a non resident is taxed $2747. Time to move on.

[Adrien C.]

First of all - the taxes typically are 2X and not 3X as you described. And who cares if that's the case. As long as the numbers still work, it's a good deal. From speaking with dozens of investors from other states, the indiana property taxes for investors are still less than owner occs in many states. Heck, this property in Illinois would have $9K taxes. But again, if the taxes plus all the other expenses still make it a good investment- who cares what the taxes are compared to a home owner. Plus you get to deduct it anyways. Focus on what matters.