Converting TownHouses into an apartment building?

2 Replies

I believe the Subject may be miss leading,

 I am paying alot of property taxes on 5 attached town houses that share a common single roof.  So taxes x 5 properties each year.... I tried a google search on this subject and there was a discussion about Rowhouses.  I'm not interested in turning them into this but the ability to absorb them into a single rental property has me a little curious if this could bring down the taxes from a multi town house to a more manageable figure.   Anything helps, if I'm not too clear on the concept or additional information is needed please ask.  I'd love to hear about this in more detail. 

Thanks friends and extended family at Bigger Pockets,

Bryan Hill

@Bryan Hill

Interesting thought, but whether it would reduce your property tax may be dependent upon your taxing authority.  Here apartment buildings are assessed {theoretically} on the value of the business where separately deeded town/row houses would be assessed based on comparative sales.    

Consequently, here it is conceivable your property taxes could be lower if the townhouses were merged into a single property.   However, assuming you would be permitted to merged the lots, the cost of merging and the negative implications when it comes time to divest may outweigh any reduction in property tax.

Don't merge into one taxable property.  You would lose the ability to sell single units in the future.

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