Updated over 1 year ago on . Most recent reply
Uncapping Property Taxes
An obstacle I'm running into with building my portfolio after analyzing a potential deal is the very high property taxes, particularly on properties that have been owned a long time by the previous owner. Im.not certain if this is a Michigan/Detroit thing but I'm finding the excessive taxes are making good cashflowing deals and the ability to profit impossible. For instance the last property I was considering taxes would go from $1K to $10K annually. Is anyone else running into to this and how are you navigating? I'm trying to think creatively (such as a land contract for a period of time) and coming up short on how to make a good deal happen.
Most Popular Reply
Hey Terri, a lot of folks get turned around (and completely screwed) when it comes to property taxes in Michigan/Detroit.
I'm extremely versed in this. I own 12-doors in Detroit. I have appealed property taxes on all of them and won with an average reduction of 50%.
The first thing I'd ask is how are you calculating your future property taxes when analyzing deals? Happy to talk this over via DM or phone as there's lots to it.
There's a right way and wrong way.