All Forum Posts by: Account Closed

Yes, believe me I understand all of that, in respects to the real estate tax rate in the area. 

The area we live in actually has seen a tax rate decrease for 6 straight years as well as a combined homestead exception that decreases the annual tax bill by another $2.00 for residents, but when you factor in those high home appreciations you are actually looking at an $18 increase.

Our property tax base is expected to increase by 6.6% to nearly $8.6 Billion in net taxable value. 

We bought our house in 2009 so I don't know about the value on the property back in 1999 as I was just showing the property tax history from the William County Tax Records since 1999. 

Yes, it has appreciated well over the years from $144,900 to $230,000 and will be paid off in 2023.

That is great and all if the housing market is still booming 10+ years down the road when we decide to sell, but again like I said I'm an investor for high cash flow and the property taxes around my area effect that greatly not to mention all the competition with all the new luxury apartments in the area with an average rent of $1,100 with rent houses at $1,700 and rising.

Outside my area I have found a balance of high cash flow as well as appreciation.

And no, I can't deduct when calculating my taxable income because I do not itemize as I use the standard deduction.

Happy investing Jon and I hope you find the right fit. :) 

The property tax is broken down into 6 taxing units with the exemptions in place that reduces the county's value on the property when applying the 6 individual unit tax rates. 

HOUSE VALUED AT $195,592 (according to the County) 

My tax bill is as followed..

Austin Community College - $5,000 exempted reduces value to $190,592 (tax rate 0.100800) ( $192.11)

City of Leander - $0 exempted $195,592 value (tax rate 0.577867) ($1,130.26)

Leander ISD - $25,000 exempted reduces value to $170,592 (tax rate 1.511870)($2,579.13) 

Upper Brushy Cr WC&ID - $10,000 exempted reduces value to $185,592 (tax rate 0.020000) ($37.12)

Williamson County - $0 exempted $195,592 value (tax rate 0.426529) ($834.26)

Williamson County FM/RD - $3,000 exempted reducing value to $192,592 (tax rate 0.40000) ($77.04)

Yes, I say go for that higher cash flow, if you need that passive income now, which is the whole point I got into income properties in the first place. (Over $1,500 a month in extra cash from my four properties; and no I don't touch any of it as I am saving for more properties and my approaching retirement, so I will continue to go outside the great state of Texas.

Small fish like me need to supplement their income and with a future pension on the horizon that will annually reduce in spending power with inflation, I can't afford low cash flow and bank on a speculated ROI 10 years down the road.

Don't get me wrong all my properties are appreciating as well (Yes, Texas is one of if not the strongest in that, and if you got the means go for it, but there are other good housing markets with again higher cash margins) as I also didn't get into real estate to loose money over all and my properties are all located in emerging or stable markets. 

There is a reason I don't buy and hold in my home state of Texas. (7 generations).

My residential home, in the suburbs of Austin, Texas is about 1,700 SQ FT built in 1993 valued at $230,000

Property Taxes over the years on this property

1999 - $363

2000 - $413 +

2001 - $511+

2002 - $668 +

2003 - $1,371 +

2004 - $1,361 - 

2005 - $1,336 -

2006 - $1,479 +

2007 - $1,613 +

2008 - $3,350 + big jump 

2009 - $3,389 +

2010 - $3,478 +

2011 - $3,508 +

2012 - $3,314 -

2013 - $3,486 +

2014 - $3,831 +

2015 - $4,055 +

2016 - $4,433 +

2017 - $4,850 +

2018 - Will be crossing the $5,000 + mark on the estimated tax. (Got a new roof)

Population Growth = School Growth (New Schools)

Schools that look like Taj Mahals, with football stadiums that rival colleges with score boards to match. 

North of Austin, Texas in the suburbs where I live

(Population)

Cedar Park, Texas 42,000 in 2008, now 77,000 in 2018

Leander, Texas 23,000 in 2008, now 50,000 in 2018

People with homes paid off feel like they are back to paying mortgages with what they have to set aside for taxes.

Getting to where you don't want to add to your curb appeal.

Everybody is moving here, but everyone can't afford the housing with the taxes here, so developers build tons of new apartment building (they are everywhere) But then the rents are through the roof trying to keep up in covering the taxes every new year, cash flow is the pits.

This effects the demographics in the school districts as starter families can't buy in at these prices so elementary schools shrink while middle and high schools boom with more established families coming in with older kids. 

Here is what I pay outside of Texas

ALABAMA PROPERTY - $697 (cash flow $402 on a $905 rent) Pay 8% on PM

2 GEORGIA PROPERTIES - $810 (Dallas GA) (Cash Flow $251 on a $1,015 rent) ; $1762 (East Point GA) (Cash flow $500 on a $1,425 rent) 9% on both for PM

I see the GA taxes going up in the Atlanta area as it continues to boom. (If Amazon comes in major boom) That $810 is going up to $1,307 for this tax year. 

OHIO PROPERTY - $2,043 (Cash flow $388 on a $935 rent) 10% on PM

What I pay total on my investment properties in taxes is almost equal to what I will be paying on my residential. 

So, by living in Texas I avoid state income taxes (where some of my properties are located), and by buying and holding outside of Texas I avoid high property taxes and low cash flow.

I use Cleveland Property Management Group. 

Been with them for over 2 years now, with no issues. 

They charge 10% of the rent on their fee.

Your numbers are off and this is not in Williamson County, it is in Georgia.

None of my properties are in Texas, 2 in Georgia, 1 in Alabama, and 1 in Ohio.

THIS HOUSE IS BRAND NEW, JUST BUILT and is under Warranty

EAST POINT, GEORGIA (Fulton County)

4 Bed; 2.5 Bath; 2 Car Garage; 1,812 Sq. Ft. (Built 2018)

PRICE: $150,990

PAID: 25% Down ($37,747.50) 4.875% Interest Rate; 30 Year Fixed (Conventional Loan)

APPRAISAL: $168,100

OWE: $113,242

RENT: $1,425

PRINCIPLE & INTEREST: $599.29

PROPERTY TAX: $146.90 (This is not based on a vacant lot)

INSURANCE: $50.14

MANAGEMENT FEE: $128.25 (9% with Property Frameworks)

TOTAL: $924.58

CASH FLOW: $500.42

LAWN CARE: Tenant responsibility 

MAINTENANCE: $1,000 prepaid in escrow

It is a good deal and I'm happy with it

Finally done, inspected, and appraised!

Got a smaller interest rate 4.875%

Loan Amount $113,242

Cash to closing $46,323.30 (Closed Aug. 2)

Estimated monthly payment with loan, insurance, taxes $796.33

Rent $1,325

Right at 50% on my income to debt ratio so the lender wanted to see some reserves which I did.

After inspection had to fill in the holes. Don't think they were fully done when the inspection took place, but it is done now.

Punch List

Then to get it ready for a tenant...

Got a new PM and smaller fee, about to hit the market!

PRICE: $150,990

HOUSE APPRAISAL: $168,000 

Very pleased!

I've never been to California. 

Having enough of it, so I don’t worry about not having enough of it.

Depends on the house as well. 

For example in my neighborhood in Leander, TX. our house sits right next to another house that is the exact same floor plan, sq. ft, built same year, etc. 

Our house according to the county is valued at $211,000 while the other house is valued at $191,000. I pay $5,300 in taxes while they pay $4,700.

Why? Curb appeal. 

Our house is well maintained and has nice landscaping, trimmed trees, lush cut green grass, while the other house is over grown with trees, house needs paint, rain gutters are falling down, garage door all dented up, the lawn is never mowed and on and on. 

New to this myself as I'm buying a new constructed house.

I'm currently under contract on a house in East Point, Georgia a suburb of Atlanta near the airport, lots of employment in the area with a need for housing.

4 Bed; 3 Bath; 2 Car Garage; 1,805 Sq. Ft. (To be completed by mid July) 

B Class Property

Celebration Series 1805-B (The House Model) Wade Jurney Homes

Wall to wall carpet in the living room area. I wanted vinyl plank, but unfortunately I have no say in the input or control into the materials used in various places in the home. These have already been determined by the builder. This house was under contract with another investor who pulled out.

Carpet #729 (Fortune Cookie)

Vinyl #AC432 (Sandy Brown)

Tops #7734-58 (Jamocha Granite)

The house comes with a 10 year warranty and all future repairs must be done through the company or the warranty is void.

COST - $150,990 ($95.00 deposit holds the home with approved lender and attorney) 

ESTIMATED VALUE - $153,000

RENT - $1,325

CASH FLOW - $364

I got financing for a 30 Year Fixed loan for 5.25% at 25% down 

Now waiting until July before I can do anything else.