Taxes on Paid Off Rental Property

[Bruce L.]

Hi Guys,

I have one more payment in December of this year and one of my rental properties will be paid off.

What things do I need to plan on in the future now that the property is paid off?

How will this affect my taxes? I believe passive income will be treated as ordinary income. I currently have a regular 9-5 job and in 25% tax bracket.

Is there anything I could do to be better prepared?

Would you buy more properties so you have the interest deductions to offset the passive income?

Thanks.