Tax and Insurance going up too often

[Brian Terry]

Hello BP nation, I own 2 houses, live in 1 and rent one out, both in Ft Worth. I'm over halfway done with my first flip, should be on the market within a month. Now my question is about taxes and insurance on a mortgage. I never hear anyone when talking about analyzing buy and hold properties how to predict T&I going up periodically. Since owning my first house 8 years ago it has gone up 3 times. I just got my notice and its unsettling to find out mortgage is going up again another $50 a month on my rental!!! So when analyzing these deals is there a formula or from anyone's expertise how do you account for this or better yet, is there anyway around this from happening. All the books I've read and podcast I've listened to I have never heard anyone bring this up. Luckily on this house we have $400 a month cash flow after cap ex but $50 a month could make or break a deal in the future. Please any info will be greatly appreciated!!

[Daren H.]

I think a lot of people offset insurance and tax increases with rent increases. Obviously, your market and property should support the increase. As someone mentioned above, protest taxes if you have a good case. Also, I shop my insurance when it goes up. I have no loyalty to my insurance companies. As I explain to them, "you are increasing my premiums for not filing claims?"