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High property tax rates means low ROI. You can be easily paying 2%+ market value in property tax in those northeastern states.

California incentivizes holding onto real estate with prop 13, which caps property tax increases to 2% per year for the entire time you or your beneficiaries own it. There are people paying less than $10k per year property tax on $3M+ properties, and they can rent for $7k+ per month.



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