Buy and Hold - Major Renovations - Tax Assessment

[Christos Philippou]

Hey everybody... Hope I am posting in the right place here.

I closed on a property a little while ago (#2) and still learning all the ins and outs of real estate as I go. I have a quick question that should be able to be answered rather quickly, as it might be a beginner's question.

The tax assessment is obviously very low on this property as it isn't finished. There is nothing but studs and some rotted floors inside. We are completely renovating this historic building to 2 separate units. So new floors, new appliances, putting up walls, etc. Now my question is about the assessment for tax purposes.

Will the city know to automatically come out and reassess the property once it's finished? Do I have to "ask" them to come out and do this? The reason I ask is because once it's finished, it's value will more than likely double or triple, therefore drastically increasing taxes. Any insight on what to expect would be awesome. Thanks!

[Colleen F.]

The Certificate of occupancy will trigger the change in value.  I am assuming there is no CofO now.  It really depends on your area when they will change actual the bill since here they bill quarterly I would assume the quarter of completion.  For a two family look at local comps and you can estimate what your tax will be in the end.