Tax assessment and reassessment

[Jorge De Jesus]

Hello BP, really hope you can help with this one! I am in Harris County Texas, more specifically the city of Katy,TX where public works, school districts and such are part of the tax bill PLUS additional fraction of a percent directly to the city. The appraisal district has a particular portfolio of properties all assessed at significantly lower than what like property potentially would be valued at. I say potentially because although 3/2 is common in the area these style of property is not. I am in process of putting a T12 together since owners are older and have mismanaged the books. Am I in danger of being reassessed once we close? We are talking about going from 30k to 90k annually which I can still put into my numbers and it’ll work, I just don’t want to be overconfident and overlook something like this in the future. I plan on putting the higher numbers as a possibility when I present to potential partners. Current owners said they get a form from the county so often to help with reassessing the homes but they simply discard it. I’m not looking to do the same

[Michael Dang]

Be conservative with your underwriting.  With last years flooding, the appraisal district may be aggressive on reassessing property values to increase revenues to pay for the "future" flood control projects since voters balked at the mayors initially proposed tax increase to pay for it.