Updated about 2 months ago on . Most recent reply
Can taking a tax abatement be a mistake?
If you are looking at a property and you could get a 10-15 year tax abatement (on the improvements you make), when can it be a bad idea? Assuming there are restrictions obviously, like you can only rent to 60% or 80% AMI tenants or some other rent cap. What about if the house may not rent for that much anyway? Like the rent cap is 1200 but the rent would probably be 1000, for example. I'm thinking you are risking losing out on future rent increases to over that limit, but you are getting the tax relief and certainty. Is it just a math question? Or can/will abatements hurt or help resale down the line? Thoughts?