Refinance after Rehab and Property Tax

[Suduk N.]

Hi All,

I bought a MFH for $360k last year in Chicago. I put $80k into it for a complete rehab. It's been fully rented and is generating very nice 20% CoC return (down + rehab cost). Prices have gone up quite a lot since I bought it. My agent ran a comp and he is confident I can get $550k for my rehabbed MFH.

I'm thinking to do a refinance to get the cash out up to 75% LTV for the next property purchase or I can also sell stocks to get the cash for the next property. What would happen to property tax after the refinance? Would it go up significantly because it will be based on the new appraised value? Chicago property tax has gone up this year and will continue to increase in the next 5 years.

Based on the calculation from the cook county assessor website, my new property tax at 550k value will be $14k compared to $8k I'm currently paying.

http://www.cookcountyassessor.com/Resources/Reside...

Does it make sense to refi?

[Jeff Burdick]

Originally posted by @Suduk N.:

Hi All,

I bought a MFH for $360k last year in Chicago. I put $80k into it for a complete rehab. It's been fully rented and is generating very nice 20% CoC return (down + rehab cost). Prices have gone up quite a lot since I bought it. My agent ran a comp and he is confident I can get $550k for my rehabbed MFH.

I'm thinking to do a refinance to get the cash out up to 75% LTV for the next property purchase or I can also sell stocks to get the cash for the next property. What would happen to property tax after the refinance? Would it go up significantly because it will be based on the new appraised value? Chicago property tax has gone up this year and will continue to increase in the next 5 years.

Based on the calculation from the cook county assessor website, my new property tax at 550k value will be $14k compared to $8k I'm currently paying.

http://www.cookcountyassessor.com/Resources/Reside...

Does it make sense to refi?

 I've a couple multi-families that are similar situations to yours in Chicago and yes I would refi.  Cook county does their own appraisal so your banks appraisal shouldn't impact the county's at all.  

Also, protest your property taxes.  I've saved thousands by taking a few hours of researching this thoroughly and following through.  I have a 3 unit probably similar to yours worth about 450K and my taxes are $4500.