Why regular property tax reassessments are overlooked when underwriting a deal?

[Andrea G.]

I have been investing in residential real estate since 2012 first in California and then in Florida.

My cash flow has been slowly and regularly increasing during the years thanks to the cap on property tax increase in these 2 States (IE proposition 13 in CA and 10% cap on investment properties in FL).

Recently I started to analyze deals in Texas and Indiana for my next rental property.

Reading some posts on this platform and talking to some investors, I quickly realized that, during the years, all the rent increases will be eaten up by the regular property tax reassessments.

I think many investors often underestimate this issue.

Am I missing anything?

Thanks!