Im am considering relocating to Detroit to invest in RE. The only thing giving me pause is the price:prop tax ratio. It seems that in many cases the prop tax is so high than the property is in effect worth less than zero...however, it seems that the prop tax is almost arbitrary with comparable houses having a wide range of tax rate (ive seen $800-$4000 spreads). So I have the following questions.
#1- After acquiring a property, what is the likelyhood of getting a reduction in prop tax? Are there any methods that result in a greater chance?
#2- How reliable is the previous year's tax in determining what the current years tax will be? I found the city site that breaks down the previous tax....but I am curious if the tax if reassessed after a new owner purchases the property.
#3- Do the larger multi unit properties generally have a lower tax:rent ratio than SFH? I am having trouble locating tax records for some of the larger multi units.
#4- Do you have any evidence that the tax rates will be changed or home values re-assessed? I read an article about a proposed prop tax freeze during years that RE prices decline, however im not sure what has happened with this bill.
Thanks in advance for taking the time to answer any of my questions.
