The agreement should specify what happens on death as far as the lender getting the property in full or selling it and returning the excess (if any) to the estate.Conceptually, I think these are equivalent to an annuity.

If you subtract out the excess of the crazy high taxes, then you would probably be left with a cash flow of about $100 per month.

The two edged sword here is that if you aggregate your properties, and presumably qualify, you’ll be able to deduct passive losses in excess of $25k with income over 150k.The bad news is that you will not be able to deduct any previously qualified (i.e. suspended) losses until you sell the last aggregated property.

This is a common bait type post where they wet your appetite and see if you bite.

My company has in excess of ten tenants and we were instructed to purchase a real estate software.

On a one-off basis, a rental property qualifies at about $100k, will see about $5k in federal tax savings, and the fee will be $1500.Bryan Hancock, you obviously haven't dealt with a reputable firm, or 300% ROIs simply don't whet your appetite...either way, your pencils need sharpening.

My goal is to use the HELOC for 2 years and then do a cash-out-refinance.If I go this route, then my 2nd property will cash-flow $550/month ($6,600/year) if the prime rate stays the same.So, here is my question: What should I do with this excess cash-flow?

Once he sets up his cash flow he can work with the excess to develop some strong RE strategies.

From personal experience as an out of state investor, I'd say investing in cheaper properties ($50k>), and getting rents in excess of $900/month in undesirable neighborhoods, does not reap the rewards that initially look great on paper.

He is 8 years into the business and does very well.I have done fairly well in my first 2 years and have completed deals in excess of $2,500,000.