Hi all. Looking for
some seasoned advice. I’m a prospective
rental investor looking to invest in long term residential real estate
properties for my retirement plan.
My initial strategy I’ve decided on, with a little bit of
research, was to look at homes in the 100k-115k range and put down around
50k. Then have everything left over from
rent money and personal savings go into paying off that property and have that
snowball into buying the next property till I had 5 or more.
After reading up some more on what my tax situation would
be, in that scenario, I would be on the hook for a lot of income taxes once the
house was free and clear. I read that
you can use the mortgage payment to deduct from the rent and claim that as an
expense. Is this true?
If so, I would likely change my strategy quite a bit, and
leave the house to be paid in a normal 30 year note, so I don’t get hit so hard
on taxes.
Any other advice you could provide to someone looking to get
into investing? Does that seem like a reasonable
amount to spend on a property to get a pretty good return in rent? Should I get an LLC?
I’m probably going with a property management company, because
I won’t have time to manage them myself.
Any advice is greatly appreciated.
Tim
