a lot of people will poo poo this, but I also live in a market where cash flow is low, property taxes are high and properties are expensive (which is a relative term).

Post Dodd Frank sellers have continued the same bad practice of selling houses to occupants with financing at selling prices that are way high, can't be justified via any type of 3rd party valuation (appraisal, zestimate, tax value, even recent sales in the same area).   

Consult your local CPA to calculate accurately and minimize your tax liability.

At least, if you don't want issues down the road tax wise and if the government finds out it could cause some serious legal issues.

If you have any accounting questions, feel free to reach out!

Who covers the tax bill when they don't pay the tax bill or the insurance? 

Is $107k your true net, or do you have any other expenses (mortgage, taxes, lodging taxes and fees, insurance, utilities, landscaping, WiFi, etc.)?

Please feel free to give me a call.

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

.💡 Tax AdvantagesThis is where my tax brain gets excited!