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Updated over 3 years ago, 03/16/2021
Higher Property tax vs Income tax
Hi all,
I am sure there are some tax experts on here or at least people with more knowledge or experience in this that may have advice. I am debating whether it is better to invest in Rentals in my home state of Texas or go out of state. The prices of SFHs have gone up substantially in Texas over the last 7 years, and along with that so have our property taxes. This has me looking into some other markets to start investing in SFRs.
My question really relates to how it affects my taxes, etc. Would I be better off keeping my money in Texas and paying the higher property tax which is a deduction against the property on returns. Or am I better off looking out of state at more affordable properties with lower property taxes, but that state would have income tax?
Any thoughts or advice is appreciated.