Question About High Property Tax/Low Value Home

[Benjamin S.]

Hi all: I came across a deal in my area that seemed ideal for a flip. The house in question needs a total rehab, but was priced significantly under comparable homes in the neighborhood. It was listed for around 200k and similar homes are 300-400k. It sits on half an acre, which is a pretty nice size given the area. But the property taxes on this home are enormous and approach 20k. Can anyone explain why or how the taxes can be 10% of the home's sale price? Anyone experience anything similar and have any advice? Thanks!

[Geoffrey Hoffman]

Originally posted by @Jay Hinrichs:

@Geoffrey Hoffman

  wow with tax rates like that I can certainly see why the values remain relatively low and really don't move much in a market like that... do you have sales tax and state income tax as well...

you can see also why an area like that would be so heavy to renters no need to own.. with tax rates like that... Ouch.

 We have-

1. Property taxes in the 2-4% range

2. State income tax

3. City income tax where you work

4. City income tax where you live (you get some credit for where you work)

5. Sales tax- 8% in Cuyahoga

6. The Cleveland Browns- I consider that an emotional tax.  But, our "sin tax" paid for the stadium.