Are these property taxes average!?

Question

I'm starting to look around for duplexes in the CH/UH area for house hacking. I found one for $80k that needs some improvements, and it's in a dingier-looking part of town. The property taxes are over $11k, which is more than double the property taxes for my current primary in UH. And my primary is definitely in a nicer area.

Is it so high because it's a MFH? Would I be able to get them lowered like I did when I bought my current primary? I know Cuyahoga County is bad, but at that rate, I don't know how they'll ever sell that house. I'd never pay that kind of money for that area. It's not unsafe, just a little more run-down than where I'm at now.

Matt Rutter · Answer

Here's the link Bob was talking about - it's an amazing resource with a wealth of great info: https://myplace.cuyahogacounty.us/

Nicole Heasley Beitenman · Answer

@Mo Weis I know CH is high, but not that high. Not on an $80k property. My hope is that the taxes are based on an old valuation (pre-08). It's on the south side of town near the UH border. And there are no pictures of the inside, so I'm willing to bet it's not even worth $80k.

@Bill Brandt @Casey Powers This is why out-of-state investors get into trouble in Cleveland. They jump in thinking it's just a bunch of cheap properties, but they don't know the area well enough to recognize bad investments. I'll start sending the flood of OOSI we have here in Ohio to you in Nevada. They drive me nuts. If my research is accurate, this is owned by an LLC out of Delaware. Go figure.

@Tom Ott @Matt Rutter I live in UH so I'm familiar with the higher rates, but I've never seen anything like that. I initially got the number from Zillow. Then I checked the county auditor's website, and the actual amount is even higher than what Zillow had. I took your advice and looked again; I didn't realize I could see the tax bill broken down. It looks like there are some charges on here. It's been passed around a few LLC's over the last year or so. I'm wondering if they bought it with the intention to flip and decided to wholesale instead because the description says, "the county has this property valued at $203,000."

@Anthony R. Last assessed at $126.7k. I don't know where they got $203k.

@Bob Collett I'll PM you.

Bob Collett · Answer

Cleveland Heights taxes are high, but based upon $11k tax bill, they have the property valued over $200,000

It’s also possible that there are accrued penalties and delinquencies... or even some kind of special assessment.

Go to the county auditor website and check the appraised value. If the county’s valuation is unrealisticly high, the owner can file a formal complaint, and will win. Note: also look to see the projected value because we just had the 6 year full county wide Appraisals..

Let me know if you want me to take a look. I would need the address.

Bob

Nicole Heasley Beitenman · Answer

@Mo Weis I'll PM you the address.

Mo Weis · Answer

@Nicole Heasley purchase price should help lower it as well as I can get you comps for it. At 80k that sounds like a good deal so long as the rehab is not too bad. Can send you comps if you're like. Le t me know

Jad Boudiab · Answer

That's very high, look into the property's tax information, valuation, if there are any assessments on the property, etc. you can find this and much more on the county auditor's website.

If the valuation is around $80,000 you should be at $3,272 per year in Cleveland Heights, that's before assessments.

Anthony R. · Answer

That seems high for the area. You might want to look on the county auditor website and see what the property last assessed for. I think you can petition the city to lower it. I'm almost 100% sure that the taxes aren't 1/8th property value lol

Tom Ott · Answer

Cleveland Heights and University Heights can be very high, but I have never seen it like that. Did you look at the tax bill? Where are you seeing $11,000? Try looking for a breakdown, I am sure there are some back taxes or delinquencies owed on that property.

Casey Powers · Answer

^ Low taxes is one reason many folks like investing in Las Vegas. Landlord friendly laws is another 😁

Bill B. · Answer

Holy cow! $11,000? On an $80k property? $1,000/mo? That has to be a mistake. You guys are saying taxes might be 14% per year but might be able to get them lowered to 7%?

A $230k property (almost 3 x the value) in las Vegas costs me $70/mo $845/year. 1/3rd of 1%.

My loan payment with taxes and insurance isn’t $1,000

Are these property taxes average!?

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