We are trying to understand how assessments for property taxes may affect our deal when doing the BRRRR method.

@Martin NowakFirst use a WD instead of a qcd for the transfer.Second, assess if you really need to put the property into the same LLC as the operation.

If I do any work that requires a permit first, allow the city to do any appraisal that raises the assessment of the property value and thus the taxes, and then do the cosmetic rehab later, would this be a viable strategy for keeping the taxes down?

Can an assessment be wrong?

If your realtor can spot the differences in finishes and truly assess the value or necessity of adding in HVAC vs window units or hardwood vs laminate or finished basement vs not then you have a keeper.

It assesses on the city site at $123,200.The reason I bid so high is because I have been outbid before, and the market in my area is very volatile.

You need a year's worth of gas bills to assess this cost. 

As I said, just curious.Anyway, 1st Bank in Phoenix is doing 70% LTV on a cash out refi with a 15 year fixed, 1.5% origination, at 3.375%Great question, and my assessment is based on my strategy.

@Heather Schmidtknecht you really want to find the source and do not take the realtors comment as an accurate assessment.

Look at what cap rates were when times were good and when times were bad and also assess where that particular area was when those conditions applied in comparison to where it is now.