Austin Tax Appraisal - Heart ache :( future strategy??

[Prash Manohar]

Hi All,

This question might have been asked before. I bought my rental property in 2021 and was saved by homestead tax (previous owner had it) so ended up cash flow positive for 2021. However now for 2022, HS is no longer applicable (which is not a surprise) but honestly i didn't expect a 60% appraisal. I am expecting my property tax bill to double from last year and this would make me CF negative for 2022. I am looking for some guidance here on how to mitigate this in longer term? I understand one way is to increase rents which I will later this year but my worry is if Austin home prices continue to appreciate, mortgage rates are sky high, inflation is crappy, property taxes go up, what else can i do other than raising rents?

Thanks