Importance to property tax

[Sumit Sehgal]

Hey Everyone,

When comparing lower property tax areas:

Arizona (Phoenix)

Tennessee (Nashville)

North Carolina (Charlotte)

Versus

Texas (Dallas), higher property tax area

How much importance should i give to property tax as a determining factor in where to buy an investment property for a 250k 3 bed 2 bath single family home for investment purpose?

I feel that property tax is a constant expense i need to worry about as a landlord.

Any views on importance of property tax in yout decision-making to narrow to investment areas would be appreciated

[Travis Fairbairn]

I analyze properties in Dallas all the time. I don’t think you need to look at tax any different than any other expense. It’s just higher here. If you can find a property at enough of a discount and good terms(along with all the other factors involved that make it a good deal), and you run your numbers and it works, then I wouldn’t worry about tax by itself. Higher taxes probably do affect the price-rent ratio. But ultimately there are plenty of landlords in Dallas that are renting properties and they are covering their tax expense. Just gotta find the right property!