2% Property Tax in Indiana for out of state investors?

[Angela Tod]

Hi all,

When analyzing our deals, we've been leveraging publicly reported property taxes, which often are a fraction of a percent (e.g. 0.70%) of the purchase price - in this example, on a $100K home, the annual tax would be $700 so divide that by 12 months = $58.33 per month

One of the lenders we are considering working with says that out-of-state investors pay 2% of the purchase price in property tax, which significantly skews our cash flow into the negative.

In this example: 2% of $100K = $2,000 annual property tax for OOS investor, divide by 12 months = $166.67 per month, over a hundred bucks more than what I'd been anchoring to...

I tried googling whether this was the rule, and even searching the BP Forums, without finding anything that confirms this.

Which number should I be using?

Thanks in advance for the guidance!