Understanding your property tax calculation is crucial for your overall investment strategy.

Investing in high-tax areas can be risky if the rental income doesn’t cover the tax costs. Monika Hengesbach says there are strategies to reduce your property tax burden. For example, if you live in Tarrant County, homesteading your primary residence can save you money, with the average exemption being $10,000.

Another effective method is challenging your property appraisals. In Texas, properties are valued based on fair market value, which can lead to overestimations. If your fixer-upper is valued the same as a $500,000 house next door but is only worth $250,000, you have the right to contest the valuation.

Knowledge is power.

@the_wealthy_wallet

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