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Updated about 7 years ago,
Few Questions, Out of State Investing
Hey there. I have a few questions. I'm not looking for anyone to answer all of these or any of these really. Just need some suggestions on where to look. Whether that be a forum post, a book or whatever else. Before I list the questions I should fill you all in on my situation.
I bought my first home in Colorado 5 years ago. Thanks to the booming market, I made a good amount of money on it when I sold it a few months ago. I now would like to use some of the profits to invest in my first rental property. I am active duty military stationed in SC now but looking to purchase a home in GA north of Atlanta. So all of that raises some questions.
I purchased that first home with a VA loan and put no money down. This is my only experience with mortgages and I now know that I will not be able to use a VA loan for an income property. So I think my question is, do I go with a traditional loan and throw down 20%? Are there other, potentially smarter options?
Will I have to pay taxes what my renter pays? I know property taxes will be taken care of through the mortgage but are there other taxes from owning a rental property? Also will I be able to write off some of the cost associated with maintaining a property?
Should I start an LLC to do this? I'm thinking it could help with taxes and liabilities but I really don't know much about LLC's. I also heard on a podcast that if I use an LLC, a home office would be a tax write off. Sounds like a check in the "pros" column. Are there things I should consider for the "cons" box?
Does anyone use those home warranty programs that's suppose to cover certain things like large appliances if they were to ever suddenly break? I have listened to many podcast and watched a lot of YT vids but I have never heard someone even mention this.
Thanks in advance to anyone who response. Again, I'm not looking for someone to give me all the answers here and now (though I wouldn't complain). I'm more looking for resources to find the answers. Thank you!