I am new to multi-family properties and currently exploring. One question I have is on how is the property tax value calculated for multi-family properties. Is it based on the assessed value of the property like residential properties? and will it be recalculated after sale based on the transaction price?
First of all every county does things a little different. Yes it is based on assessed value, but commercial is assessed differently. It is not based on comps, but net operating income (NOI). Check with the county assessor for the county that you are interested in.
@Jeff Greenberg , I am curious - does California freeze commercial property values at the last purchase price similar to residential or rules are different for commercial?
I am 99% sure that the taxes are frozen at purchase I believe they can go up around 1% a year as in the residential as well. I have not purchased a commercial property in California yet .
@Jeff Greenberg thank you for your answer.