Property Tax Calculation for Arlington Texas

[Vincent Chen]

I am an out of state buy and hold investor. I am currently working with a turnkey company looking at a property in Arlington TX. As part of the cash flow calculation by the turnkey company, the property tax calculation is much lower than what I expected. Looking at a 160k property, the property tax is only estimated to be 2150 which is only 1.3% of the value I am going to purchase at. When I asked more about it, I was told that this is what the property currently pays for in property tax so it should be accurate. Does this sound reasonable? I worry that the property tax would skyrocket when it gets reassessed and pretty much diminish most of the cash flow that I was expecting to get. I am unfamiliar with Texas and any help/insight would really be appreciated!

[Darryl Taylor]

That is not reasonable. I have a home in Arlington but in the Mansfield ISD, which is slightly more expensive, that is appraised at roughly 160K and my taxes are closer to $4500.

I would suggest that you go to tad.org and input the address into the property search. You can see exactly what the appraised value is and exactly what they are paying in taxes. If you are only at that rate expect it to go up. You can also get the current tax rates and make your own future calculations assuming they stay the same.