Newbie Question: Why are Property Taxes Rarely Addressed
Hi folks, first post here so please, be gentle.
North Jersey resident and looking at investing out of state.
I've been reading and learning a lot recently about how to calculate ROI, and eval good rental cash flow. What I rarely see or here discussed are property taxes and how that factors in. I am mainly looking out of state because high prices and North Jersey property taxes make the rent to value ratios very unfavorable. Am i missing something? I have been looking at other areas like Memphis and FLA where property taxes are a small fraction of my area. Any thoughts or insights are appreciated.
Most Popular Reply
It's part of your PITI and should be included as such in your math.
Just like a deal might not make sense because someone's FICO yields a higher interest rate, there are also cases where a deal might not make sense because of the high property tax bill, HOA dues, etc.