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.

Avoid deals in poor locations with high vacancy rates, overpriced properties, significant deferred maintenance, and unclear financials.

I see it as a tax-benefit discussion with the seller.

For example, avoid wasting time comparing new construction with sun-soaked windows to basement units with stained drop ceilings.

Positives are proximity, low property taxes, no income taxes, no weather events, very low maintenance stucco/tile structures, “young” properties (5-20 years old) 

However, they require consistent maintenance to avoid becoming a liability.

They don't pay the same taxes a citizen would pay.

Again, there is a non-disclosure agreement, an arbitration agreement, an agreement not to post on 3rd party sites like this, and for matters to be resolved privately in order to avoid harming anyone's image and goodwill.

As Dan said though, there are many tax benefits.

My payment with insurance & taxes is $1425 a month.