Back to the library

Article 23 · Underwriting & Municipal Finance

Navigating Property Tax Reassessments Post-Acquisition

Assuming the historical tax bill will hold is one of the most common underwriting mistakes.

  • The acquisition trigger: when a park changes hands at a higher recorded deed price, the county assessor will often reassess based on that purchase price.
  • Allocation defense: cleanly allocating value in the purchase agreement between non-taxable personal property and real estate minimizes exposure to steep post-closing increases.

Key Takeaway

Always model post-acquisition tax reassessments in initial underwriting to avoid unexpected margin compression.

Want these delivered in order?

Subscribe to The MHP Capital Digest and receive the full library, edition by edition.