Property Taxes Went Thru The Roof

[Lindsey Mannix]

Hi there, I have been under contract to purchase my first investment property for a few weeks now. Today, I just received my property tax estimate from my lender and it went from $1000 to $3400/year. I'd like opinions on if this is a deal I should move forward with. Here are all of the details:

$159030 purchase price

$31806 down (20%)

3.5% interest rate on 30 year loan

$5500 estimated closing costs, including about $2200 of that to buy down the rate

$858/year for insurance

$2300-3400/year for taxes (the large swing will depend on when/if the property is reassessed - currently it's at $106k which is the $2300/year rate and $3400/year would be if they reassessed at $159030 (my purchase price)

I believe I can rent it for $1475/month, vacancies are low in my area but I am priced higher than most of my competition.

I've got about $2k in it already between earnest money (won't get back most likely), inspections, appraisal, etc. Thoughts on moving forward or let it go???

Thank you,

Lindsey