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Podcast: The Real Estate Espresso Podcast
Episode: Past Property Taxes Can Mislead You
Description: Today we’re going to talk about a due diligence mistake that shows up in underwriting all the time, and it can be a silent killer of your cash flow. It’s the assumption that the existing property tax assessment, the number you see on the tax bill today, is a reliable input for your forward-looking pro forma. In some jurisdictions, it’s not.In fact, in certain places the current tax bill is almost meaningless for a buyer, because the act of changing hands triggers a reassessment. And that reassessment is designed to “catch up” for years, som...