Property Taxes - I can't figure it out

[Chris Rosenberg]

Hey everyone. I'm looking to venture out into other markets as my home market (Myrtle Beach) has been pretty tight for a while now. I've been looking at a few areas and Columbia, SC is on my radar. I've been looking for 1-4 unit BRRRRs. The numbers seem to pencil out but I'm trying to figure out these property taxes. I know it varies based on tax district, but it seems like taxes are 3-4% of market value. Is this correct? And do they reassess after a rehab or do they basically go based on sales price? I mean $6k taxes on a $150k house is pretty steep. 

And although I prefer small multifamily, it seems like SFR works better in Columbia based on price points, rents, and tenant retention. Are you finding this to be true? Thanks in advance.

[Chris DeTreville]

@Chris Rosenberg It seems almost impossible that our non-owner occupant taxes are that high, but it's true. There are some tricks and ways to reduce that burden though. Also to answer your question, they reassess at the point of sale. So if you buy it for 150k the taxes will then be assessed at that new number. If you rehab you should be fine. So buy it for 100k, rehab it and they assessment will still be 100k even though you added value and it's now worth $190k. Small multi family that you can add value to is the sweet spot in my opinion, but extremely difficult to find. With SFR you will have more opportunities. Happy to discuss further if you want to shoot me a dm.