Are high taxes a deal breaker?

Are high taxes a deal breaker?

West Palm Beach, FL · Member since 2016 · 12 posts · 1 vote

Greetings BP!

While researching properties I have run into some that are in great neighborhoods but come with high taxes.I am looking to buy and hold the properties, the properties have potential to cash flow but the taxes do cut into the income. Could there be a way to benefit from the high taxes?

Thank you for your time and insight

Best,

Jonathan

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  • Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    8y

    Run a proforma for your acquisitions.  Properties with high taxes may not make good investments, especially if your goal is cash flow.

  • Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
    8y
    Jonathan Santana here in Florida we can challenge the tax bill in September and many often try, some do well, some do not. It might be worth the cost, if you really like the property.
  • Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
    8y
    They can be... it depends on how much cash flow you are looking for and how mush the taxes eat into that. Property taxes are deductible as well so that could lessen the burden a little
  • West Palm Beach, FL · Member since 2016 · 12 posts · 1 vote
    8y

    Thank you for the insight!

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