Is Your Next REI Project In A High Tax State?

You’ve always known that location matters when it comes to property investing. Here’s another thing to consider when choosing your next investment project — TAXES. 

According to this recent article on Bigger Pockets, there is a direct correlation between real estate price appreciation and the overall tax rate in each state. It makes sense given that more and more folks are choosing to live in lower tax areas, all things being equal. After all, who wants to pay more to Uncle Sam than necessary? With higher demand for housing in low tax areas, that means upward pressure on prices. 

That’s a good thing for real estate investors looking to fix and flip. When your exit strategy involves getting in and out quickly, you don’t want to invest into a declining market. 

Although there are many factors that go into choosing your next project, it appears that the area’s overall tax burden should be one of them. Below is a list of the states with the lowest and the highest tax burdens along with the corresponding price appreciation in the last three years. 

Compare the numbers and decide for yourself…

Source: Bigger Pockets 

No matter where you decide to invest for your next real estate investment, NavCap can help get you started down the right path. We have competitive financing for fix and flips, rentals, and new construction and offer bridge loans for short-term needs. Reach out to your loan officer today to learn more or contact or 888.444.3160 to be put in touch.

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