Cleveland 4 unit Property tax tripled

[Ashish Brar]

Hello BP Folks,

I have been recently hit by a complaint from the school board in cuyahoga county for my 4 unit rental property for an increase in property tax from 51k value to 173k valuation. I have the counter complaint form to submit. I would like somebody in a similar situation to shed some light on this matter. Do i stand a chance to lower the valuation or even stick to the old evaluation. The school wants the new basis to be the purchase price of the property. My argument to this is - 

All neighboring buildings are in similar condition and similar evaluation, no repairs have been made to increase value of building. Its an income producing property so part of the purchase price is the income along with land and building value. The income is down to 50% after purchasing the property. So an evaluation of 173500 does not validate.

I would appreciate any input into this matter.

Ashish

[James Wise]

Originally posted by @Ashish Brar:

Hello BP Folks,

I have been recently hit by a complaint from the school board in cuyahoga county for my 4 unit rental property for an increase in property tax from 51k value to 173k valuation. I have the counter complaint form to submit. I would like somebody in a similar situation to shed some light on this matter. Do i stand a chance to lower the valuation or even stick to the old evaluation. The school wants the new basis to be the purchase price of the property. My argument to this is - 

All neighboring buildings are in similar condition and similar evaluation, no repairs have been made to increase value of building. Its an income producing property so part of the purchase price is the income along with land and building value. The income is down to 50% after purchasing the property. So an evaluation of 173500 does not validate.

I would appreciate any input into this matter.

Ashish

 That's going to be a tough one for you to win. The county is probably going to use the price you paid & end the discussion. Look at the bright side though a quad for $173,000 is a pretty solid deal. With the shortage of multi family in Cleveland I am selling those Cleveland quads for about $200,000 right now.