All Forum Posts by: Sam Raj

@Vik J. Thanks for the response. I was planning on looking at existing SFH properties (2-4-year-old houses because of the limited budget) but thanks for the heads-up on the new builds. That is good to know.

Hi BP members,

How is Jarrell, TX considered from an investment perspective for new investors/SFH type properties?

-potential for appreciation in the next 5-6 years

- and the ability to rent easily

Not looking for positive cash flow which is doubtful in most places anyway.

The location appears to be great (I-35/close to Taylor/Samsung project). Mainly considering it as our budget is 300-325k. Are there other better cities to consider around Austin for such a budget?

Are there any drawbacks in the current market to choosing Jarrell? (Example: too many rentals etc.)

I did see some similar posts and I would love feedback from those who invested recently in the last year or so.

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Newbie and not an expert here :). But I am seeing the same trend regarding leasing. From what I see - several SFH properties in the Leander zip code have been on the leasing market for 25-40+ days with no movement. Many of the 1900-2300 sqft houses are priced around $1-$1.2/sqft which appears to be a fair rate when you compare it to current apartment rent rates which are quite high. The larger sqft houses are typically towards the $1-1.1/sqft rate.

Is the slow down in leasing (in areas such as Leander/Georgetown etc.) due to the time of the year? Are December 2nd half/January very slow months and can we expect it to get better? Or is it because many people have purchased investment homes in the past 6 months and now there is excess supply?

Thank you everyone for the very useful feedback! It is quite scary to think there is no cap on taxes for investment properties - looks like that is going to be a huge variable when investing for the purpose of rental incomes.

That is some great feedback. Thank you very much for the information. I will make sure to engage a professional company for tax protest!

I have reposted this in Austin real estate forum which is more appropriate. Sorry about posting it twice. Please ignore this post, I do not see an option to delete it or move it to a different section.

https://www.biggerpockets.com/...

-SR

Sorry for posting this again here. I did not post it in the right section the first time and I do not see a way to edit the original post and move it to the Austin real estate forum (which is more appropriate for me).

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Hey All,

This is such a great forum. I am glad to have come across it!

We are in the process of buying an investment home. Property tax is pretty high at 2.7-2.8% (from what I see) in the areas we are looking for (This is Texas!!).

How does the property tax work for investment homes in Texas/Austin area (when they are not your primary residence/and you cannot claim homestead exemption)?

I can see that for 2021, the house we want to consider is assessed only at around $320K and the tax bill is around $9000. If we decide to put in an offer, a successful bid may end up being in the 420k price range.

For next year's (2022) property tax assessment, can I assume the county will not stick to a max 10% cap on the assessment (320k+32k) since this is an investment home and instead it can be at the minimum, my purchase price or more? If they come up with a very high number, would I be able to contest it based on proof of my purchase price or is the assessment strictly governed by comp.sales in the area?

Are there any rules at all on how further they can go with property taxes on investment/non-primary residence homes?

I am trying to do the math and property tax is a huge component. So any guidance will be helpful!

Thanks!

SR

Hey All,

This is such a great forum. I am glad to have come across it!

We are in the process of buying an investment home. Property tax is pretty high at 2.7-2.8% (from what I see) in the areas we are looking for (This is Texas!!).

How does the property tax work for investment homes in Texas/Austin area (when they are not your primary residence/and you cannot claim homestead exemption)?

I can see that for 2021, the house we want to consider is assessed only at around $320K and the tax bill is around $9000. If we decide to put in an offer, a successful bid may end up being in the 420k price range.

For next year's (2022) property tax assessment, can I assume the county will not stick to a max 10% cap on the assessment (320k+32k) since this is an investment home and instead it can be at the minimum, my purchase price or more? If they come up with a very high number, would I be able to contest it based on proof of my purchase price or is the assessment strictly governed by comp.sales in the area?

Are there any rules at all on how further they can go with property taxes on investment/non-primary residence homes?

I am trying to do the math and property tax is a huge component. So any guidance will be helpful!

Thanks!

SR