Looking to invest in NJ but I can't understand how with taxes

[Andrew Dampf]

Hi BP, I'm a brand new investor, looking to pick up a multifamily via FHA and house hack. I'm reading through the book on rental property investing and I see on the "analyzing a deal" chapter, he takes into account the taxes. I'm looking in the Collingswood area and I'm not understanding how investing can make financial sense if taxes are estimated to be $7500/year on a property but places seem to be renting for $1000/mo. Is the solution to look at properties where taxes aren't so high? Thank you for reading and taking the time to reply.