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.
Tax, SDIRAs & Cost Segregation
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 about 9 years ago, 11/02/2015

User Stats

1,002
Posts
1,043
Votes
Owen Dashner
Pro Member
  • Lender
  • Omaha, NE
1,043
Votes |
1,002
Posts

Where are the most ridiculously high RE taxes?

Owen Dashner
Pro Member
  • Lender
  • Omaha, NE
Posted

I am in the process of looking for some smaller multi-family properties (4 to 12 plex) to buy.  In one of my "farm" areas in Iowa, anything over 3 units is typically taxed as commercial.  Here are 2 examples of the cashflow-killing RE taxes being assessed here:

Deal 1: 4 plex, $2200 gross income, $110K asking price, tax assessed value of $149,500.  The taxes on this property are $6,432 per year.  Almost 6% of the asking price!  

Deal 2: 6 plex, $3800 gross income, $230K asking price, tax assessed value of $262,500.  Taxes are $11,292 per year.  5% of the purchase price.  

I know there are some other pretty highly taxed areas out there (Texas?  New Jersey?)...  What are the highest rates around?  Makes it pretty tough to buy anything that will cashflow when your taxes run almost 25% of your gross rents!

  • Owen Dashner
  • Loading replies...