Remember, your property taxes are the product of your assessment multiplied by the tax rate, which is unknown.

I pull equity out of some of my rentals to multiply my cash flow with cash out refis.

Meaning, our dear borrower paid $19,900 as interest and only $1,700 as principal.No doubt that thanks to this great guy Spitzer it is worth being the bank (-: (and indeed you rarely see banks loosing money (-:)I can tell you that I owned few Duplex as buy & hold investments in Indy, and the 3 T (tenants, taxes, termites...you can add trash, toilets...) caused me to see how my 9% or 10% target return to turn into 4% or 5%.Not mentioning occupancy problems and such.And last point - You have mentioned a point that reflect another advantage in this strategy - Every month you are getting back principal & interest, meaning, you decrease your investment amount, and you get your money back allowing you to re-invest in the another transactions (line buying another note every 2-2.5 years).I can tell you that I have invested in multiply strategies in REI (done flips, had buy & hold) but I found the notes investment niche as the one the had the best potential-risk ratio, mainly because you have a property to guarantee your investment, and of course because you don't need to care about the 3T (Which cause you to earn more/invest less time in each investment).You don't have such powerful guarantee in almost any other investment.And seems your strategy is completely based on appreciation - While if you look at 100 years range, no doubt the real estate values greatly increased.