Property taxes in regards to investment property

[Brandon Gamblin]

Question #1: Upon the purchase of an investment property that you will be rehabbing, its understood that property taxes are to paid. But at what point? At closing? I'm also told that property taxes are a holding cost, so are you paying it monthly during the rehab project? Or are you just paying it all at closing? How am I supposed to pay it at closing when I don't know how long the project will take? 

Question #2: And whats the best way to calculate and budget for property taxes? I assume a 3% tax rate of the ARV. I do this because I recently looked online and the highest tax rate for any given state is 2.40% for New Jersey. Is it safe to calculate and budget property tax costs this way?