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Unbelievable tax rates are killing my cash flow. Hold or sell?
Hi. I would like your advice on one of my three rental properties.
I purchased this SFH in Cook County, IL., in 2018. I paid 168,000 and put 25% down. Over the past three years, I have raised rent to 2,300 (It's Section 8, great tenants). I have also refinanced once, and have a 4.5% loan, owing 122,000. However, the taxes in this county are unbelievable, and keep rising. I have appealed successfully once, but next year I will pay an astonishing $11,000+ in property taxes. Or 900+ monthly. It really kills the cash flow, which is appx. 250 monthly. The tax situation continues to be controversial in this area, lots of news reports of people not being able to afford it, threatening to leave the area. My fear is this will impact the future of the area, and this property. Property market is strong in the area, somehow, and the Zillow estimate for the property is 200+. I don't know whether to hold it, or sell it?
Yes, these taxes are real, I know they are much higher than other areas, even California where I live.
I would like to refinance, but this property is held in an LLC and the best offer for a refi is appx. 4% and it's expensive.
What should I do?
Thanks and have a great day!