what the heck are special taxes?

Question

hey! so Im trying to get some practice analyzing apartment complexs and im having trouble understanding taxes.

its a 7 unit in Milwaukee Wi that rents for $600 a unit which ends up being $4200 a month /50,000 a year rental income

I guess my only question is what the heck are special taxes?

(specials was $18,534)

the only conclusion i can come up with is that it is  35% taxation of that 50,000 annual rental income? im confused because if thats the case this property would be cashflowing at $-200 based on all the expenses that i calculated on the property.. am i missing something? just seems ridiculously high and turned this property from a great deal to a hunk of doo doo

https://www.redfin.com/WI/Milwaukee/2208-W-Locust-...

Brie Schmidt · Answer

You need to look deeper into it.  Specials can be for things like street work or water main updates, but usually it is for past due taxes and water bills.  I think in the few hundred of tax bills I have looked up in Milwaukee only once or twice it was for city work, almost always it is past due taxes/water

Michael Henry · Answer

This could include street construction in front of the house or in an alley.

Shawn Ackerman · Answer

@Andrew Tobler as both @Brie Schmidt and @Dawn Anastasi mentioned the "specials" are not special taxes.  they are typically for water bills from what I see.  If the current year water will is not paid within the year, nearing the end of the year(around late Oct/early Nov) the water works "rolls" the outstanding water bill into the current years taxes.  I guess the logic is property taxes will be paid at closing so may as well add them.  Our title company does not close any of our deals until they receive the "special assessment" reports which will outline any fees charged by DNS(dept. of neighborhood services) for code violation non-compliance, special work done around the property etc.... All the best to you on your journey.

Lastly, Please consider that immediate area at 2208 W. Locust.  Looks a bit rough.

Dawn Anastasi · Answer

Specials are for anything like overdue water/sewer bills, unpaid maintenance bills, etc. You should look up a tax bill by address to get a more complete picture.

what the heck are special taxes?

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