BRRR Property Tax Implications

[Nick Redding]

Hi All,

I have a couple Columbia, South Carolina properties I am thinking about refinancing to get some cash out. I am trying to figure out what the new tax value would be so I can recalculate the proposed cash flow. Here is the scenario for one of them:

Purchased a year ago for $65K, low and behold, the value used for property tax is $65k. The value is $100k now (after some rehab), so if I 75% LTV cash-out refi, will the new tax value be $100k?

I called the Richland County tax office and they wont divulge how tax values are estimated. I wanted to avoid asking an MLO because they may just tell me what I want to hear.

Any help on this is greatly appreciated because we all know what the investor tax-rate in SC can do to cash flow. Thanks!

[Andrew R. Lucas]

Hey @Nick Redding,  I can't say for certain, but I don't think they will update for refinances.  I just checked the county website and my Brrrs only reflect the purchase price.  They don't mention the refinance amounts.  

Good Luck