Property Tax Reassessments

[Jeremy Lipp]

First time poster, long time reader.

Has anyone else had any issues with property tax reassessments on their rentals? It feels like I'm fundamentally not accounting for, or in general miss understanding this concept...

I bought my first 4plex a few years back in Columbus, Ohio, and after a very large reassessment around year 2, my ROI was completely thrown off by the new tax number. I chose to sell the property and maybe made a grand or two over the course of the ordeal.

Thinking this was a one-time situation, I'm now running into this again with a duplex in Cleveland. Pretty close to year 2 of an ownership hold, I got a letter in the mail saying my taxes are being challenged and ultimately being raised. This AGAIN is destroying my monthly ROI number.

I have 2 more duplexes in the Cleveland area that are approaching 2 years of ownership.....is this going to happen 2x more times?

I'm getting frustrated by this entire process, as there are barely any properties that have numbers that work as is, and the ones that do seem to get crushed around year 2 by a reassessment. 

Am I missing something? Am I just bad at this? If this is a common pattern, why would anyone go through the trouble of investment property ownership? At this point, I feel like I would have done better just by putting the money in the market.

[Jeremy Lipp]

Scott, you the man. 

Thanks for the quick reply