Got The New Assessment Notice--OUCH!

[John Thedford]

Investors considering Cape Coral should be aware that buying properties on well water will eventually catch up with you. The city has plans to bring in city water/sewer to the entire area over the next 10 years or so. If you purchase where there is already water/sewer your assessments may have already been paid off due to time they were installed. Some areas are scheduled for the future. I just got the bills from the city for one property I own. It appears the assessments will be added to the tax bill starting in 2018. You will have two options: pay in advance or have them added on to your tax bill. Though less expensive to pay in advance, I see no advantage except cash savings. The bottom line is more cash invested in a property with no ability to raise rents for that "amenity". When everything is paid off it appears the total cost (using city financing) will be almost 24K. I expect my taxes to increase on this property to around 6K per year and this will severely impact my return and cash flow.