New Investors

[Chetta Mail]

Hello everyone,

I and a few friends of mine have pooled money and setup an LLC just last week, we are planning to buy couple of properties for investing and rent them out. We like a house in Novi, MI and are planning to write an offer. When trying to calculate the estimated ROI on our investment, we were unsure what the property tax would be. It appears for investment properties the taxes are much higher but another friend of mine who has a rental property in the same location, was billed at the Primary Residence rate, the property is on his name and not an LLC like ours would be. I estimated the taxes here. Can you guys tell us what tax rate can we expect and if there are any exceptions when rentals are taxed at primary residence rates?

Thanks,

CM