All Forum Posts by: Katie Hanner

Killeen is pretty good for cash flow.  There's little to no appreciation, so you really want to be buying for cash flow.  Turnover is higher, and you'll definitely want to research the area/crime rates in the neighborhood.  There are a few really good threads here on BP that discuss Killeen if you do a quick search.   Lots of perspectives there.   I personally like the quad's available there.

@Jay Hinrichs that sounds like my husband's dream property :) :)

@Heidi Wilson but what is the assessed value?  Is that the appraised value of your home, or is that a percentage of the appraised value?

@Sylvia B.  That is great!   My parents in IL are taxed on 33% of assessed value, but just under 9% tax rate in their county.   That is actually what spawned my curiosity originally.   Because our home in Texas is appraised at about 3x what their home in IL is, yet our property taxes are just a little over 2x what theirs is....PLUS they have almost 5% state income tax.  

@Jordan Moorhead, my post was certainly not an advertisement to invest in Austin.  I'm very transparent about the what the Austin investment market looks like -- you aren't going to be a high cash-flow investor here right now at most price points, and if that is your primary investment goal - it probably isn't the right market for you.  In my opinion, that has more to do with the appreciation we've seen in the market in the last 5 years than the tax rate.    

But what I've been discovering as I learn more about other out-of-state areas is that the property tax portion (rate and assessment type) isn't super far off from many other areas.  There are definite exceptions, but it's been interesting to me to learn that the hype seems higher than the reality, comparatively speaking.  Especially from the standpoint of someone living in Texas who can take advantage of the zero state income tax.    I love learning, so this has been a good education for me :)

@Ned Carey - I definitely don’t just consider property taxes.  I was actually posting because Austin (TX in general) notoriously gets “dogged on” for high property taxes.  Not just in the investment community but this is also a common complaint in my neighborhood fb group, for example.

But when I’ve put pen to paper, what I’m finding is that compared to other places that people of moved from, tax RATE isn’t that much different, and where their gripe really is coming from is that the AMOUNT of taxes they are paying is higher because the value of their home is higher.

Please don’t misunderstand, TX does have higher property taxes - and if I didn’t live here and get to take advantage of the zero state income tax that would definitely be a consideration for my RE investing — it just doesn’t seem to be quite AS bad as it the hype, from what I’m seeing (with a few exceptions).

I’d much rather want to make sure I’m investing in a solid market than whether prop tax is high or low —as long as my numbers work!

[insert "of course she's going to say yes...she's a Realtor" here...]   :)

But seriously... there is so much that can happen between identifying the property and closing...this is a definite yes.   If you're working with an experienced, reputable real estate professional, you are taking advantage of their negotiating skills, their connections, and their experience navigating potential issues from contract to close.   Definitely worth working with an experienced agent!  

And (at least in Texas, where I am) -- the sellers are paying the commissions, not the buyer.  So as a buyer, it's a no-brainer to be represented.   

In 2017, I coordinated 170 transactions.  I've been doing this for 6 years.  I've seen A LOT.  I can say without a doubt that if I was representing myself having only experienced a couple of transactions, I would not be equipped to handle some of the issues that came up during escrow.   Partner with a professional -- it helps you reduce your risk...and your stress!  

I'm curious to hear what others outside of Texas experience as well.

I'm just now beginning to feel comfortable considering an out of state investment.  Property taxes seem to be a topic of much conversation (I'm in TX)...so I'm curious  to do a poll -- what are property tax rates like where you are/where you invest, and what are they based off of?  And where are you?

For example -- in my area 2.23% on 100% of the assessed value.   

**AND...GO!**

@James Piercy I can just speak for my experience, but in Austin that doesn't not likely a realistic expectation for gross rent in that price point for a single property.   In the last year, the highest I've see is a handful of properties sold that brought mid-high $5000's in that price point.

You also may want to consider taking a look at what your returns and cash flow would look like if you took the existing equity and purchased a couple smaller properties. Depending on what your goals are (COC return, cash flow, etc) that might be another option? Or what @DougWoodville is suggesting...