Suppose I buy an investment property of 500k with 300k down payment. For remaining 200k, I take a loan at 4% for 30 years. Monthly mortgage will come out to be ~950$. Say monthly HoA is 400$ and monthly property tax is $550. Total expenses monthly will be 950 + 400 + 550 = 1900 And I put it on rent for say 2500$. - My primary residence is already on loan and I have been living in it for 7 years. Can anyone please tell me how much will I save monthly on new investmet? How much amount of rent that I get will be taxable or how much amount can I deduct from my taxable income ? or how can i show more expenses to reduce tax etc TC 250k
How ?
With the crash, it may turn into a ghost town where you cannot find a tenant who can afford to pay the rent. Will you be ok then when property prices are down 80%?
Prices down 80%... when did that last happen?.. And you consider yourself helping the OP?..
Are dell engineers not required to know basic math?
What he’s trying to say is make an excel spreadsheet with all these numbers. Then alter them to see what happens if the assumptions change. Do some scenarios.
If you to ask instead of doing your own homework...
You should ask a CPA.
All rental income is normal income. The only deductions are interest , taxes, advertising, maintenance, utilities and insurance https://www.irs.gov/businesses/small-businesses-self-employed/tips-on-rental-real-estate-income-deductions-and-recordkeeping
You think a property worth 500k will garner 2500 as rent?
One bad Tennant and you're in the red 30k to 70k depending how much damage they do and how much free rent they receive from good ol NYC courts, and once they know they will be evicted expect anything from them running utilites 24/7 to taking out trim, knobs and molding on their way out.
Do background checks. Do not accept anyone with less than 750 credit score. Be very careful reviewing the job history. And try to own more than one rental property to better spread your risk.
This is WeWork, minus the "charismatic" founder and laundered SoftBank capital.
You’re making way too many assumptions.