One time when I bought on owner financing, I totally forgot that I didn't have property taxes included in my interest-only payments to the seller. 

Hi,We recently (Aug 2024) bought commercial land of around 2 acres. this was part of bigger commercial lot (around 25 acres) which had AG exemption and so the taxes that they paid was around $20 each year. we received a 'AG ROLLBACK' letter from the appraisal district that starting 2025 tax year, we will be taxed at it market value resulting in additional taxes, interest and possible penalities for 3 prior years.

My assumptions are:1) Cap-ex, maintenance, vacancy, and PM costs are around 33% of rent. 2) My desired cash-on-cash return is 12%.3) My taxes and insurance, for argument's sake, are a combined $550. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Vacancy rate, insurances taxes, interest rate, repairs and maintenance.

Agreed - plus two additional thoughts:1) I always recommend having your CPA also review the drafted operating agreement for the tax issues. 

Besides lists from the tax assessor, how are you finding your deals?  

@Palak Patel copied from our website, so use what's useful for you:_________________________________________________________________________Below is more information about what our Applications Department does to screen applicants and find the best tenants possible for your property.Required InfoWe require the following from each applicant over the age of 18, that is not a dependent of another applicant (as evidenced on a tax return):Copy of acceptable state picture IDRecent YTD paystubRecent W-2Recent Bank Statement, all pages, no info blacked outRecent tax return if self-employedApplicants are often slow about turning this information in, asking us why we need it and then taking several days to submit.

Especially if your son could then try to sell his primwry with the ADU under the sec 121 tax exemption I wonder if he could sell you the land?

This address is reflected in the land survey, tax collector, and mortgage.