Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago, 07/16/2016

User Stats

33
Posts
16
Votes
Benjamin C.
  • Investor
  • Stamford, CT
16
Votes |
33
Posts

Property Taxes in Indianapolis - Don't these have to rise?

Benjamin C.
  • Investor
  • Stamford, CT
Posted

Hi All,

I've run the numbers on a few investment ideas in Indianapolis, the numbers look good on paper, but the cash flow seems to be to be helped by the low property tax rates. I'm curious people's thoughts on the risks of property taxes rising over the long term. 

How is it sustainable for a 3 bedroom house to have $1300 a year in property taxes? How much would it cost the town to send 2 kids in that house through school? Plus all the public services that need to be provided? I'm no expert on municipal budgets, but it seems hard to get my head around how they make it work. With the increasing debt levels of municipalities in markets like these, isn't it reasonable to think there has to be some tipping point in the next decade where these town are insolvent and even right leaning towns have to raise property taxes?

And taking that thought a step further, what happens to the small investor with maybe a half dozen rentals in Indy when property taxes double and their properties are negative cash flow now????

I'm very curious for thoughts from those who understand property taxes better then I do. I also think this can apply to many markets besides Indianapolis, but it was just the one I was looking at today and thinking about this.

Thanks all

Ben

Loading replies...