Higher Property tax.Not sure if I have consider Property tax as risk as that is the case in most of the surrounding towns.

That is county tax as I am not in city limits.That would only add a few hundred more annually if it was so just over 1 percent if city and county.Some states have no income tax but the property tax is very high so you have to calculate quality of the area, rent growth, and economic drivers to see If paying high taxes to own or invest there makes sense.

I work in Accounting and am a current CPA so would be looking to learn about RE tax as well!

Hello@David Matarazzo  Why did you have to pay the Excise Tax as a buyer?

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

For the mortgage: principle balance of $65k, interest rate of 5.75% for equal monthly payments for 30 years will give you something like this:Interest:         $311.46Principal:        $67.86Property tax:  $81.25PMI:              $270.83TOTAL:         $731.41It looks like you might not have included the property tax as part of your calculation?  

This amount is the income subjected to self-employment tax. As

When I look at properties in other locations that are valued much high, example being a place going for $1.5M plus in the Washington, D.C. area is paying $12K in property tax a year.  

Additionally, I have a few clients based out of CA and their entities are subject to the CA franchise tax, a minimum of $800 per year whether your entity reported a profit or not.