Property Taxes
Hello, I'm new to creative investor. Two years ago I bought a 4 family house that was rehabbed by someone else . The taxes on city records were $2000, the norm for a 4 family house in this area. After I bought the house, it was reappraised and the taxes were increased to $6500. Ouch! I tried to fight the assesement, but was rejected. Two years later the city (NYC) has inecreased taxes by 18%, so I am now paying about $8000. Double ouch! I'm not in a high income bracket and the house is in the worst part of a gentrifying community. Can someone advise me on what to do?
Well you are probably not alone in failing to calculate new taxes as a result of rehabing. Probably many are shocked to find out that their hard work and capital improvements are a bonus to the local government and an unthought of overhead expense to their pencil and paper projection of expected returns. Live and learn! In some areas you may be able to get tax abatements. Check!