Property Taxes Are So High in Austin

[Christopher Sica]

Hey Guys. I have been doing the numbers for rental properties here in Austin implementing the 50% rule (I know its super conservative, but so am I) and if the property taxes in Austin were lower like in other states it seems it would be easy to be cash flow positive. However with these massive taxes every year, I have no idea how the heck to do a cash flow positive deal unless I buy a property at a ridiculous deal like foreclosure.

Any suggestions???

Thanks,
Christopher

[Jad Allen]

Well the high property taxes in Texas are a double edged sword. Paying those property taxes keeps you from paying state income taxes and also helps suppress the purchase price of properties.