Questions - Dos and Don'ts Questions (Second Rental Property)

[Sean Jabbari]

Hello All,

New to this forum and site, and I'm looking to learn more as I'm looking to purchase a my second rental property within the next 3-6 months. I'm looking for a purchase of a house to rent in the $100,000 - $180,000 range in the Indianapolis / Indiana area. I have the cashflow currently to put a 20% down payment (if needed). I'm looking in this range, because I have a full time job currently, so I'd rather find properties that are ready to rent right away and to deal with good tenants.

My goals are to continue to buy a new property every year and take advantage of the depreciation against my current W2 taxes along with other eventual financial freedom goals. My strategy is to build my rental properties for a long term approach rather than any short term gains.

I tend to get into the weeds of things, but I like to have a full understanding of everything and have a full thought out strategy. Please let me know if I am not thinking of anything else with my questions or thought process here:

• 1. Should I look to calculate the depreciation savings on the property when making a decision? As I enter in a higher tax bracket (as a W2) this has become more apparent of the savings I can see here as well.
• 2. Should I look to put 10% down or is there any reason to place more for the down payment?
• 3. Is there a certain ratio I should be aiming for my rental income versus mortgage?
• 4. Should I be focused on buying when interest rates are the best? My credit score isn't the greatest (691), so I know this can poorly affect me with my interest rates (any other advice here will help)
  
• 5. What other questions should I be asking that I am not?
  
• I'm looking for the long term approach to things, but want to make sure I take all the advice I can and not get too stuck into the weeds of things. I'm sure I'm missing a lot here, so I'm open to any and all feedback.