Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

45
Posts
23
Votes
Chris Chesser
  • Sycamore, IL
23
Votes |
45
Posts

Cash flow in a high tax area

Chris Chesser
  • Sycamore, IL
Posted

I've found a triplex listed at $78k with a monthly income of $1300. I ran this through BP's rental calculator and 50% rule says it should cash flow about $320, however the tax percentage in my area is just shy of 12% meaning $4,590 annually in this example. Taxes  have destroyed cash flow on every property I've looked at and after accounting for vacancy, capex, etc. cash flow was calculated at $-242. This just seems wrong but I'm new to this, how are others coping in high tax areas?

Most Popular Reply

User Stats

57
Posts
8
Votes
Richard Arden
  • New London CT
8
Votes |
57
Posts
Richard Arden
  • New London CT
Replied
could be a 12 point mill rate? such is wayyyyy less than 12% actual.. and is actually super low.

Loading replies...