Hi, I'm new to the site, and just starting out with renting a property I inherited.  I'm just wondering if there is a general rule of thumb as it relates to what portion of your rental income should offset the property taxes?  For example, if the property taxes are $2K/yr, should the rental income on the property be $10K/yr, making the property taxes a 20% of rental income expense?  Is 20% too high or too low?  Any advice is greatly appreciated.

Thank you.

There is no clear cut answer on tax ratio specifically - it's the ratio of all your expenses should be less than 50% of total revenue generated typically.  

It varies with the state, county and even city you're property is located in. So honestly the only way to evaluate it will be to start looking around at properties nearby to find out both the rental rate and property taxes.

I have two very similar 3 bd, 2 ba houses about 8 miles apart.  Worth about the same, and rent is $50 apart.  Property taxes on one are 60% higher than on the other.  So I don't think a "rule" like this could work.

You should be more concerned with cashflow than with what proportion the taxes represent of your expenses.  Most people on BP aim for $100-200 per door on a rental, and some aim for the 2% rule (something I've never seen in my area, but a good goal to shoot for).  Either way, the cashflow is more important.