Appeal Tax Assessment to Increase Cash Flow in Baltimore City

[Coles Mercier]

I'm a nuevo Real Estate Investor, and I will close on my first property on November 1. Based on many books, blogs, vlogs etc., it seems that cash flow should always be the priority. Therefore, my first plan of action, after I close, is to appeal the recent tax assessment on the property based on my purchase price. I bought the SFH for $76,500, however, Baltimore City assessed it at $110,333 (and I'm thinking that's what it has based the taxes on). In addition, while I was under contract to buy the home, the appraisal came in at $92,500. So, I'm thinking if my appeal is approved at either purchased price or recent appraisal, my tax bill will be cheaper, therefore increasing my cash flow. Baltimore City real property tax rate is the highest of any jurisdiction in Maryland with this property being assessed at 2.36 percent.

Does anyone have experience with this? Any tips you can share will be much appreciated.

[Ned Carey]

I would definitely appeal the taxes. (Ok no I wouldn't.  I never get around to it until it is too late, but do what i say not what I do)

The appeals in Baltimore city can be tough, however it is hard to argue that what you paid is not the fair market value. When you are denied  challenge the appeal. I have heard they only get serious when you take the challenge up to the court level and then they back down. 

As someone who looks at thousands of assessments a year, I firmly believe the the tax assessments in Baltimore city are criminally negligent.   We are not talking off by 10 or 20%, we are talking about being as much as 500% off.  Sadly it is the poor neighborhoods that are hit worst.