How I’m Quietly Turning 4 Rental Properties into a Passive Income Goldmine While Crushing My 9-5 Grind
Ashley:
Mike, when you were analyzing the deal on this property, was there anything that you learned or maybe you would’ve done differently? You did mention that this was a high appreciating market and did that have any kind of impact on you when you were running the numbers?
Mike:
When I originally ran them, no, but that’s what I would do differently. So at the time I was doing what I think a lot of people do and they look at Zillow and they go, okay, prior years taxes are X. That’s what I can anticipate it being when I buy this thing. And that’s how we run our numbers. What I didn’t realize was the whole limit on how much the government will raise taxes once it’s been owned for X amount of time and that once you sell a property that taxable rate will UNC cap and whatever the current state assessed value comes into play. I knew nothing about SUVs, I knew nothing about millage rates and the way you can do crazy analysis with taxes that I don’t think a lot of people do, especially in the beginning, but just for easy numbers or the realistic numbers, the taxes at the time that I was basing it off of was about 1760 a year.
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