When filing your returns

[Chet Hileman]

As a lender one of the biggest mistakes I see on a weekly basis from my investors are tax returns that are simply to aggressive. What I mean by this is that everyone is hell bent on not paying any taxes and instead investors find thousands and thousands of dollars of expenses on each property, which creates a loss on your returns. You may be able to withstand a loss on 1 or 2 properties, but after you collect several and you're losing several thousand a year on each property, that immediately decreases your overall income making it harder and harder to qualify for a loan. My advice to any investor is to not go overboard with your deductions, even if that means paying some taxes. What really stinks is when your lender tells you that you cannot buy another property because your CPA was to aggressive. I recommend having your lender review your returns before you file so adjustments can be made if necessary!