how to deal with property tax if investing out of state

6 Replies

I handle property tax by paying what I owe when it is due. If you have a loan, it will more than likely be included in your monthly escrow payments as a part of your mortgage payment.

Originally posted by @Courtney Jones :

Please elaborate on what you mean by handle....property tax.  Are you disputing the amount you were billed?

 Okay, I live in California and I want to invest in out of state. Specifically South Carolina I just found out that the property tax for non residents is about 6% which seems excessive. So I was wondering if any of you have experience with dealing with this kind of situation. Interested to see what was the approach. 

I lived in Oregon and Invested in Ohio. I registered my entity in Ohio and I paid property tax associated with the property. When I filed my own personal income tax my accountant did the additional forms for the state I was investing in and appropriate taxes were paid. 

@Rafael Hernandez any non primary residence in South Carolina will be taxed at 6% instead of 4%. This will make your yearly tax payment pretty high. Rent is higher due to this but it is still a hefty burden not seen in NC right above where we are located. I have my primary and most investment properties in SC and even though they don’t have the same assessed value, the taxes are higher than my primary residence.

Looking at NC, if I have a 2 bed 1 bath, I may rent it for 500 but where we are it could go for 800. The 3600 more made can go to CapEx and also to offset my taxes that may be 1k or more.

Good question regarding SC because it is different and I make sure to tell my investors that really quick before we start searching.

Hmmmm….this is not correct.  It’s not 6% directly, it’s the 6% value times a millage rate.

For instance, my rental, valued at $204k, had a tax bill of $2200 per year.

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