Need some advice on Property Taxes and Mill Rates

[Shayne Whittington]

Hello everyone, 

I seem to have a problem that I didn't take into account when running my numbers on a rental property I just bought. I ran the numbers with the Trulia estimated property taxes for my area. It cash flowed will with those numbers but now after looking up the Millage for the area my property is in and I almost had a heart attack.. 

So, my first reaction was to figure out exactly what "total Millage" was. Millage Rate is amount per 1000$ of property value used to calculate local property taxes. Now knowing what a millage rate is I looked up what my properties millage rate was. It turns out its rate is 65.2! Dividing 65.2 by 1000 gives you 0.0652. Now you have to multiply that number by your property value, 115000, which gives you your annual property taxes for that area. That brings it to 7498 in property taxes per year or 625 per month. 

Now the rents in this area on average are at 1100-1200 per month. So now knowing this, it pretty much kills the property and now negatively cashflows. My question to everyone here is, should I sell this property off and focus on a different area? This was going to be a BRRRR but I have yet to finance it so I have 100% equity in the property as of now.

Let me hear what everyone thinks! 

Thank you, Shayne