Looking at one of the threads below, this reminded me of a current deal I'm working on. I'm underwriting a multifamily deal in Nashville right now, and going through the due diligence found that the taxes were going up this year from $76k to $180k. That's the biggest increase I've ever seen. Apparently the average increase in the area was roughly 40%. I was just wondering if you guys have seen any other metro area where taxes were significantly increasing this year.
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Large public transit systems are going in. 20 Billion dollar project I think. Gotta pay for it somehow...
yeah we underwrote about an 80% increase in property taxes on a deal we just bought in nashville, and that may even be too low. But how do you know exactly what your new taxes will be? they haven't decided on the new milage rate.
Definitely too low, bare minimum of 90% of PP. It could be a great time to buy deals in Nashville though as they only reassess every 3 years, so if you buy something with a low tax bill this year, it won't get reassessed until 2020. Just a thought.
consensus from appraisers and tax consultants was 65% of purchase price. But it really just depends on the neighborhood you are in.
Good point. We just assumed the same mill rate. It's anybody's guess as to what it will work out to be. I even called the assessor's office, and they said the mayor is trying to get a resolution passed to reduce the rate because so many people are freaking out about the tax hikes.
I just UW a deal in Memphis where taxes are doubling per the appraiser
The Memphis tax setup is so fucked. It's the only municipality I've ever worked in where city taxes are about the same as county taxes. Take a look at a map of the city of Memphis and look over at east Memphis. They've been incorporating parts of Shelby county out there for years trying to get their tax revenues up.
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