All Forum Posts by: Mario Morales

Mike, I just took a look, in case there is a typo from my CPA, not sure but if it were, instead of 23,000 its suppose to be 13,000, will I owe more in taxes, as I will owe 10 k for the year already, I have a W-2 job.

Yes, there was no turnover and everything is pretty new. It's an FHA, so it was 3.5% down and my interest rate at 3.37%

Your repairs, supplies, and maintenance look excellent.  They are so low that it appears you had no turnover and little to no R&M.  For most of us, that situation would be a year of very high profitability.  On the other hand, insurance and mortgage interest are very high...interest is 50% of rental income.

Mario,

Nothing out of the ordinary. You ideally want a paper loss to minimize taxes and potentially even take it further and apply the loss against other income you have as Bill mentioned in the comment. 

I don't know much more about your or the property to make other additional comments or analysis on the situation. However, it seems like you are  a positive $4,368 before your depreciation, which is a good sign. Keep monitoring the rents in your market, make sure you are taking advantage of any increases possible, but don't get too greedy if are happy with your tenants. 

The “good” news is you made $3,300 and it’s tax free. Maybe even gave you a deduction against other income. The bad news is you could make the same $3,300 with $60k in the bank. So hopefully you don’t have a $100k in equity. 

In other good news, your interest expense will go down every year and hopefully your rent will go up every year. Can you shop the insurance? It looks overpriced.