Calculating taxes for multi family

[Emiliano Gonzalez]

Hello Everyone, I am trying to calculate my expenses for a complex I am looking at. I went to the county to see what the current taxes are. I then found the millage rate and roughly estimated what my taxes would be based on the purchase price if I were to buy . Both numbers are very close. Shouldn’t my taxes on the purchase price side be much higher ?

[Bruce Petersen]

I have a different take on it.  You'd better know what your appraisal district is doing right now and not just go with rules of thumb.

In my market if you go with 75-80% of purchase for the new assessed value you are going to get your *** handed to you.  Always be conservative when underwriting a deal, if you were too high then you are happy, if you are too low and could wipe out a deal.

A 120 unit property I bought a couple years back actually reassessed at above purchase price.  Assessors are getting very good at deriving value.  We of course contested and go it lowered  but even the lowered amount was ~ 93% of purchase price.

BE CONSERVATIVE, please.