Chicago Rental Properties

[Aaron Jones]

I’m looking to purchase my first rental property and I have an opportunity for a 4 unit in Chicago. One of my major concerns is of doing any type of property in and around Chicago the unnerving cook county tax rate. I am being told in some places the new rates have hit 4x what they were in 2021.

[Zak Marinko]

Seconding what @Paul De Luca said, look at what the assessed value is currently, and the purchase price you're targeting. If the assessed value is higher than your purchase price, you will have a really strong case for appealing your taxes. I did this on a property I purchased and cut my tax bill in half, lowering the mortgage by $400/month. You'll have to survive a year (or two or three) with the original tax bill though, the appeal process doesn't move quickly.

For reference, the purchase price was $470k but the tax assessment was over $700k. The new assessment post-appeal is exactly $470k