2018-19 Tax Assessment Appeal

[Coles Mercier]

I'm a nuevo Real Estate Investor, and closed on my first investment property on November 1, 2017. 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 closed, was 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 thought if my appeal is approved at either purchased price or appraisal, my tax bill will be cheaper, therefore increasing my cash flow. FYI: Baltimore City real property tax rate is the highest of any jurisdiction in Maryland with this property being assessed at 2.36 percent. I reached out to an attorney shortly after the purchase to inquire about the appeal. Apparently, the whole process takes several months, and I received my appeal results in June 2018; No reduction was obtained (even though I bought the property for substantially less than what the city says the property is worth). I'm was really surprised there wasn't a reduction, so I filed an appeal. I am happy to share that I have received the results of my second level 2018-19 property tax appeal for the investment property. Although it was a long and drawn out process, I have received the reduction to my purchase price of $78k, and I will save $1,579 over the 2 years remaining on the current assessment. In addition, because I paid my 2018-19 taxes in full, I will receive a refund of $781. So, more money to make my pockets bigger (pun intended). Thank You to everyone on this forum for the recommendations.