Houston Single Family Rental Properties
I was attracted to Houston because I thought it provided a good combination of cash flow and appreciation. After looking at several dozen single family properties (more or less with no rehab necessary) ranging from $130-$175K, I’m seriously beginning to question how you make money with a long term hold single family rental given the tax rates in desirable school districts and the lack of any exemptions on assessed value for owners not occupying the property. Is there a value range you have to stay under? Do you steer clear of the 3%+ tax rate areas such as the CyFair School District? Have you found even as an investment that the assessed value isn’t the price you paid?
I’m starting to bang my head against the wall trying to make anything pencil not knowing exactly what the property taxes will be but figuring it is the combined rate on the tax assessor’s site multiplied by the acquisition price. In doing so, the “1% rule” often doesn’t seem to work.