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Updated about 4 years ago,
Planning for property tax increases
Hi, I'm trying to get started doing buy and hold / BRRRR investing in the DFW area, but when I use the calculators on BP there's one thing I can't wrap my head around, which is tax projections. With good appreciation comes increased taxes, and it seems like Dallas has been pretty aggressive about property valuations for tax appraisal purposes. If rent prices are going up somewhere around 1% per year but property values go up 5% (or whatever) it seems like cash flow can be completely negated by a reappraisal. When I research properties and look at DCAD, it's not unusual to see houses double their tax burden over the past 5 years. How do rental property owners in Dallas deal with that if they plan to hold on to a property long-term rather than cash in on appreciation?