Estimating Taxes on a Turn-key Property
Hey guys,
I've been analyzing a lot of rentals using the rental property calculator on this website and for property tax you can look that up on the county assessor's website. My question though is that if the most recent property tax is based on the previous sale price, if your purchase price increases dramatically then wouldn't you get a huge spike in taxes?
Here's an example. A turn-key property I'm looking at was recently fully renovated and is now listed for sale at $165k. The previous annual taxes were $5665 but that was based on an estimated property value of $86k. So, wouldn't I expect the taxes to basically double once I own this property and the taxes are reassessed? If so, that's an $11k tax bill which is insane!
Thanks in advance!