Property taxes on rentals

[Karl Harmon]

For those that own properties free and clear, or even those that are financing, do you factor property taxes into your formulas? I hear a lot about the potential rents and the yearly returns, but I don’t hear many people talking about how they deal with property taxes. Thank you for your time!

[Heath Ryans]

@Karl Harmon absolutely. That makes a big difference in cash flow. On my 4 unit, I have to allocate $245/m towards property taxes. That would be 10.6% of my monthly income IF rents were even at market value yet.