Post close property tax adjustments taking deals from a 7% cap rate to a 4.1% cap rate.
14
0
52
11K
2
@ToryJSheffer I evaluated a large MF in Grand Rapids yesterday, it’s a 6% CoC if the taxes remain the same. As you know, in MI on year of sale taxes are reassessed. Usually to mil rate x 50% of the SP. Takes the deals to 0.2% CoC. Increases taxes by 300%. Are tax increases ever capped in MI?
@ToryJSheffer Always buy the LLC that owns the property whenever possible and this problem doesn’t exist.