Property Taxes
Hello BP, I am a novice investor and was intrigued by the idea of becoming a landlord. I see that you could make good money in this particular field but I had one obstacle that I simply don't understand. For example lets say you buy a single family house and the mortgage is $600/month and you rent it out for $1000/ month. So now you'll say wow $400/month positive cash flow!!! But the only thing now is that you have to pay for property taxes. Lets say in the area for your house, the property taxes are $5,000 a year. That now leaves you with a -200/month cash flow. I simply just don't understand how one can make money on a property when property taxes are more than your rental income profit. If anyone could please help, I would like some advice or guidance on how abouts to fix this problem. Thanks