Experiences of Taxes after BRRRing
Hey y'all,
Who has done the thought experiment or has first-hand experience with property taxes before and after a BRRR project? I'm using the online calculators on BP for a market that has high property taxes and definitely something to consider. For example, a distressed property in this particular market was assessed at $141k and taxed at 2.8%, or $3900/yr for the past couple of years. The ARV is about $220k after a rehab. At that rate, the new taxes would be $6200/yr if assessed at the ARV estimate and same %rate. Over a year, that's a +$192/month increase which would almost (not quite but close) kill a BRRR project for this particular case. Since the BP calculator doesn't allow for a % tax, I'm curious with anyone's experience with post-rehab/ARV property and the new taxes in a BRRR project and what your particular local tax rates are. Maybe BRRRs aren't the best in high-taxed markets? This particular market is Milwaukee, WI. Thanks in advance everybody!!!!