Creative, Poor Form, or Illegal

2 Replies

I am new-ish (currently renovating my first rental). I am also scoping a potential 2nd BRRRR. However, on this one, I believe is over-assessed for taxes and it's in a higher-taxed neighborhood than my first. So, upon acquiring, is it creative, poor form, or illegal to march in and appeal the assessment right away knowing that I'm going to be making improvements shortly? Or maybe even just not worth it. I know in the long run, it's going to get reassessed periodically anyway and it shouldn't make or break the deal, but I'm a beginner here and I'm still of the "every penny counts" mindset.

Thanks,

Dan 

Most taxing authorities only allow you to contest the value for a month give or take after they give you the estimate. On the other hand they also tend to change the taxes when it changes hands. 

If you’re going to buy and hold, wait for the next dispute period and use your purchase price to try to negotiate. You should also be able to look up the current assessed value. You might find it’s being taxed on a lower value than you’re going to pay and your taxes are guaranteed to go up. 

Where I am, they base the value of the property on the shape it was in in January of that year. So it's perfectly fine to appeal the taxes as being to high as of that time. In fact, I usually bring in my scope of work to describe everything I'm going to do it and thus why it isn't worth what they said it was in January. Different counties are surely different, but as long as you're above board, I don't see any problem appealing. After all, they will almost certainly assume if you bought a dilapidated property that you plan on improving it.