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Updated about 6 years ago on . Most recent reply

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Yman Pablo
  • Lodi, NJ
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Relevance of property tax rate a real estate investment.

Yman Pablo
  • Lodi, NJ
Posted
I am an aspiring REI and new to BiggerPockets. I am wondering how much does property tax rate affect decision making on which areas to invest in. I do not see this a much talked about topic. I thought this is important since a difference of 1% or even less in a property tax rate can make sa significant effect on cash flow. Therefore, does property tax rate affect your REI decisions, if it does, what is its relevance and what do you do about it? Or do you simply stay away on those areas?

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

Tax rates in my area generally fall within the 0.85% to 2.26% range.  I generally prefer the properties towards the lower end of that range, but I do have a couple towards the higher end of the range.  So it does affect my decision, but I dont have a hard and fast rule on what would be a cut off for me.

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