Chicago Investing / Property Taxes
I'm originally from Chicago, but moved out to the west after college and bought my first MF duplex in Sacramento. Sacramento investing has a lot of bonuses -taxes are pretty low(~1%), rents are high, appreciation is high, and fairly new construction. The only con at the moment is high competition, and prices have sky rocketed. So naturally I'm looking elsewhere and I still have family in Chicago.
The picture I'm getting from Chi is low appreciation, fair rents, fair prices(not a very hot market) and very very high property taxes. So my question for you guys is how do you swallow the tax pill? I'm looking at a property on MLS going for 430K being taxed at 13.9K. That, that's roughly 3.2% and unbelievable to people in other states.
Considering all of this, what is your cash flow looking like? Is it increasing/stable or declining year by year? Are rents keeping up with increasing taxes? What makes it worth it for you guys? - For me it seems like a pretty risky market, taxes can kill cash flow and property values