@Mark Forest I'm with you on this.
In Texas tax appraisals are running pretty close to actual property values and a tax rate is 2.5-3% of the assessed value. As you move into properties of over $250K (in Austin where I am not may are sellign below that) - property taxes could run as high as 30% of the gross annual rental income, espectially for SFRs.
Even on duplexes and 4plexes the taxes are eating nearly 25% of gross rents. You're essentially paying all of what would be your take home cash flow out to the county and other taxing entities. With current investor interest rates at 5%, our taxes are on par with P&I for a 75% LTV mortgage. That will kill your cashflow in a hurry.
I did a search in BP database on states with low property tax rates but haven't been able to find anything. I wonder if anyone has compiled something like this, or can point me out to a source that might list tax rates for various states. Obviously, other factors are also play apart, such as how high the assessed values are compared to market. Ours seem to be just about as high as market.
I find Colorado to be very landlord friendly. With all of the military bases, colleges, etc. it is full of rental properties.
Virginia is good, fair and balanced. Sometimes it can get a little nutty in Richmond. Judges in that area like to make up new rules out of the blue sometimes. Competition is stiff in all of NOVA, but it never slows down around here, thanks to DC and the private sector.
NC is good as well.
I found this awesome website for landlord friendly states. Check it out:
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