Rental property TAXES and location

[Gutless Bastard]

I have one SFH in Dallas with tenants in place and a SFH in Austin in which I live.  My plan is, once enough has been saved for the 25% downpayment, to buy a duplex or other investment property.  I would like to buy in Austin since I know the neighborhoods and such and feel like I could make a well informed decision about where to and where not to buy but I'm worried about the TAXES. 

My homes are not expensive, I bought them for about 140k each but pay over 4k in taxes just on the Austin house; Dallas, just under 4k.

Does anyone have experience building cashflow in a place with taxes this high (or, even better, specifically in Austin)?  Has anyone invested in rental properties in cities they do not know well in order to avoid taxes or other hurdles and have some tips on how to go about it?

[Sparafusile]

With high taxes you'll need to choose your location more carefully. Pick a good neighborhood in a good school district with lots of amenities. Then pass the tax bill onto your renters by asking more for rent.

You can also look in the public records and find spots where the property taxes are lower. Possibly in the suburbs, specific neighborhoods, or even older homes.

[arebelspy]

When I purchase, I look at overall numbers and NOI/ROI.  So if taxes are high, that gets factored in, and purchase price would have to be lower to compensate.

Where I am, taxes are low (~800/yr on a 3 bedroom) but many places have HOAs, so that has to be factored in.

It's all about the bottom line, wherever the expenses are coming from (taxes, HOA, more repairs due to an older property, etc.)

[Gutless Bastard]

Thanks for the replies, guys.  I have a number of months before the funds will be built up enough for a down payment so I reckon there is plenty of time for research.

[sirspiffy]

sounds like you're paying too much for the houses.  Check the local REIA and get with the wholesaler's around town. 

Also your problem could be your salvation.  Right now texas is THE place for Tax Deed/Certificate auctions.  Learn about them, talk to some pro's and Go to some auctions and you're sure to find excellent buys as well as learn all the hustlers around town.  I've heard of 25% ROI consistently from texas Tax Deed/Certificate auctions.
Your profit is built in when you purchase. 
Median Rent is already set and its your job to match it.  So more rent isn't always an option.