Dallas-Fort Worth Real Estate Investor Club

Mileage Rates

  • 11 Apr 2020 1:19 PM
    Message # 8893655

    Hello Everyone,

    I am a hopeful new real estate investor in the DFW area, but I am having trouble calculating the expected housing taxes after I purchase a home. I have gotten a recommendation of using mileage rates but I don’t not know if this is accurate for the DFW area.  I keep running my numbers but I believe my their a wrong because I am getting quite large numbers, which they very well could be right. If anyone could correct me on this or give me any examples of past deals they have done and how they estimated taxes and how they actually looked after sale that would really help me out. 

    Sincerely,

    John Remetta

  • 12 Apr 2020 9:42 AM
    Reply # 8894588 on 8893655

    Are you talking about the ad valorem property taxes?

    If so, you can look up the property in the appraisal district's web site to figure out the tax rates.  Add up the individual rates and multiply the total by what you think the house will appraise for.  If you buy a property for higher than the current valuation, it is very likely the county will move the appraisal up to the amount of your purchase.

    Here is an example with a random property I chose in Tarrant county:
    https://www.tad.org/property/11414561/

    The taxing entities are: CITY OF KELLER, TARRANT COUNTY, KELLER ISD, TARRANT COUNTY HOSPITAL, TARRANT COUNTY COLLEGE

    If you look on the rates page, you will find a PDF by year.  2020 is out out yet.  If I use 2019 rates, I get a total rate of 2.396799%.

    The county appraised that house at $45,695 in 2019.  Lets say you bought if for $50k.  You can expect your taxes to be about $1200 per year.

    I am assuming this is an investment property so you will not get a homestead exemption.  There are columns in the table to calculate that if you need it.

    Basically, taxes are not a mystery.  Everything is documented and procedural.

    I hope this helps,
      Neil Aggarwal
      Property Financing, LLC



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