The 5 Most Important Property Tax Questions for Apartment Building Investing

Property Taxes can be one of the largest fixed costs in apartment building investing. Properly accounting for them when running the numbers on a potential purchase (called the ‘underwriting’ process) can make the difference between a nicely cash flowing property and an expensive headache. Multi-Housing News has a good article with the five key questions investors should have answered before making an apartment building investment:

  1. How often are values reassessed? Is there an automatic reassessment triggered by a transaction?
  2. What is the exact millage rate? How are they set? How often do they change?
  3. Are there limitations to the increases in assessed values during the hold period (a la Prop 13 in California)?
  4. What is the timing of the assessments and when exactly are bills due?
  5. What is the appeal process and how long does it typically last?

Don’t let this happen to your deal: Continue reading The 5 Most Important Property Tax Questions for Apartment Building Investing