Is this house a bust?

30 Replies

Holy Democrat, they're really charging 3% for property taxes? That's absolute insanity dude.

1% is pretty standard in most markets. That would give you $2000/year more, which would make it a pretty obvious slam dunk.

I'd probably still seriously consider it.

Also, I don't suggest including income taxes in your evaluation. There are so many different factors that can affect the tax liability of the property, (especially as you develop a portfolio) and it's very easy to claim it as a loss if you have a good CPA. It's just a lot more headache to deal with, IMO.

@Jason Brown

That's a great point!

I've seen this before. When property taxes are very high it makes it tough to keep it as a rental.

I didn't see anything about appreciation. Since I didn't see anything about appreciation I anticipate this may be better off selling.

Sometimes it's better to take the little bit of profit and find a better deal.

Originally posted by @Darius Kellar :

@Jason Brown

That's a great point!

I've seen this before. When property taxes are very high it makes it tough to keep it as a rental.

I didn't see anything about appreciation. Since I didn't see anything about appreciation I anticipate this may be better off selling.

Sometimes it's better to take the little bit of profit and find a better deal.

 Man high is an understatement. According to the OP's numbers his county is running a tax rate of almost 3.5%!!!! That seems ludicrous to me. I'm in Florida which is known for having higher property taxes given that we need to supplement not having any state income taxes. Even here though you're looking at about 1%. 

For 3.5% I would expect to see municipal workers coming around in Teslas lol.

I can't imagine homeowner's coughing up 3.5% of property values on a yearly basis .........but I guess its been working for them.