insane tax rate in Cincinnati (Clifton) ???

11 Replies

Several weeks ago I came across a 4 plex (all units are 1BR/1Bath) in what I consider a highly desirable area adjacent to the U of Cincinnati (Ludlow Gaslight).

The address is 3379 Morrison Avenue.

I checked the taxes on the property ( for sale at $259,900) and they are listed at $9,254 per year ! That's $771 per month !

http://www.hamiltoncountyauditor.org/realestateii/ROVER30.ASP

Per a craigslist add that I found for the lone vacant unit in the building, the "asking rent" is $700 per month ( x4 units= $2,800). Unknown what the other rents are, but I put in a call to the owner today and hope to hear back from him after the holiday weekend...

Based on the numbers above, it appears that the effective property tax rate in the City of Cincinnati for apartment buildings (even little 4 plex apartment buildings) is 3.5% !!!

Is this possible???

@Chris Winterhalter , Chris, I know that you know the area, your thoughts/explanation?

thanks

DL

Welcome to Clifton!

It's tax assessed at 296k, so even a BOR complaint won't help significantly.

They don't make it easy on landlords in Cinci - and tax is just the beginning :)

NA Martin

Glad to see you are out and about looking for properties! Cincy does have high property taxes. The current tax market value is 296,890 so the taxes would presumably go down with a lower priced sale. If it is sold at 250k you could expect it would assess at around 35% or 87.5k. At the effective tax rate of 88.192116 per $1000 that would be $7,716.81 roughly give or take. So closer to 3% which is definitely higher than Kentucky (and high for other areas).

Originally posted by @Ben Leybovich :
They don't make it easy on landlords in Cinci - and tax is just the beginning :)

@Ben Leybovich

Ben, who is "they"? the City of Cincinnati or "tenants"?

In your opinion, do the Cincinnati taxes and "the other stuff" make it easier to just go out into the suburbs for properties?

p.s. I really enjoy your podcasts, although I have to admit that I am a Brandon Turner fan! : )

NA Martin ! Despite your best efforts, some people still like me! ;)

@Brandon Turner

I just want to turn everyone against you so I can have you all to myself...BTW - you didn't text today; what's with that?

NA Martin I have a good friend in Cinci whom I taught - he just closed on his second 4-plex. Look me up and I'll put you in touch.

I've been looking for a bigger apartment deal for my syndicate in Cinci but haven't sees anything that makes sense...

Hi DL,

I live about a 10 minute walk from that property. It is a desirable area (and will continue to be so if they can manage to put a grocery store back in), and the price on that 4-plex seems to reflect it. I am interested if they're actually getting that $700/unit - without knowing the details of the building, it seems a bit high for me, even for being on a good street.

To the point, though, property taxes are high, whether apartments or SFRs. There's a modest reduction for O/Os. A handy tool for quickly seeing what the tax would be on any revaluation is through the auditor's website. Pull up the property, click on "taxes paid", and enter a different valuation in the "calculate" box.

Wow that is high. The taxes in my area run just under 1 percent in GA. That is county tax as I am not in city limits.

That would only add a few hundred more annually if it was so just over 1 percent if city and county.

Some states have no income tax but the property tax is very high so you have to calculate quality of the area, rent growth, and economic drivers to see If paying high taxes to own or invest there makes sense.

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