I just received my property tax bill for my investment property. The market value is the same as the assessed value, somehow I thought it would be less, I guess I was wrong. I contacted the appraisers office & they advised that on a property w/out exemptions the taxes can go up as the market value goes up every year w/out a cap. I live in South Florida so I am a little worried because I know my rentals will not cover all the expenses. I also have a home which I will loose the exemption soon since we will be renting it & the current assessed value is $170k & the market value right now is in the $300's. Does it all work out once you do the #'s the depreciation etc. I am currently waiting to take my real estate license exam & I know I will learn much more on the field but I am a bit concern. Should I consider selling?
Thanks.

I don't know about your area, but in my area the market value and assessment is usually exactly what you paid for the property, at least the first year you own it. Then, the assessment can rise if the property is re-assessed. Here, the assessed value is usually less than the true market value, because assessments are behind. If we get a reassessment that we think is higher than market value, we have the right of appeal. I appealed one of mine and won the appeal because I had market data that proved they were wrong. As I said, I am not familiar with Florida properties, but I believe property taxes are high there because there is no income tax.

Well, I have to add my two cents...In my county, they normally assess at 80% of price paid to avoid complaint or question from the taxpayer. If I were you, I would ask for a meeting to discuss...IMO

To further explain, I was referring to a Florida County. 80% is the rule of thumb..if you are or were assessed at 100% I would definitely ask for a meeting to discuss.(complain)..IMO

I was surprised that the market value was the same as the assessed value. We purchased this property @ $115k I did not know that if there are no exemptions the assessed value would increase but that is how they explained it at their office. They said when you don't have exemptions the market value is the same as assessed & their is not cap. This is really scary due to how the market is doing & how property values keep going up. I will have to wait until next year & see how it will affect us. I do think something should be done about this because taxes here in South Florida are out of control. The market value came in at $119k & taxes for the year $2300, this is for a 950sq ft condo. I do think it's a bit high.
I don't know how investors do it unless they are always on negative on their rentals.

They take a loss not having any rental overage,but they make up for it on appreciation,tax writeoffs and depreciation on there property to lower there tax bracket.