I wonder too, when the OP said she added three per cent to the sale price, did you add it or did you divide the required sale price by 97% for the commission, that's just an indication to me of the attorney paying attention.....

It is calculated as the percentage of average acquisition indebtedness for a tax year divided by the property’s average adjusted basis for the year (average debt/average basis).Anyway, just make sure that you understand some of the tax issues before you jump in!

Because each account is responsible/entitled to its proportion of income and expenses, cash flow must always be divided up accordingly.

As interests become divided, so do income/expenses in proportion. 

I assumed I could just multiply the interest rate to the loan amount and divide by the length of the mortgage.

When they rent the house the garage is not included , Its divided in 2 , if its available they can rent a side .

Any net profits of the LLC would be divided among the various owners based on percentage of ownership.

But without a partnership return, all rentals showing up on your personal 1040 sched Es, the best I've heard and DO, is add up all the business expenses, marketing expenses, education, REIA dues (and milage driving to the REIA meetings) etc etc and divide by the number of houses and put that as an expense on EACH house called "business operations expense".I don;t like this solution but it's what I do and what I've heard others do.  

Briefly, the engineer will divide your asset purchase price among the various components (kitchens, sewers, walls, roof, etc) and some of those items have shorter depreciation periods (carpets, for example).

This is the net operating income divided by the P&I payment.