The only part that Property 1 pays on that loan is the escrow for property tax & insurance for Property 1.Thank you for your insight.You need to look at purchase price to determine cost basis, not how you financed the purchase.

The Numbers:Cash Flow Analysis: Investors typically look for properties that will generate positive cash flow—meaning the income from rent covers the property’s expenses (mortgage, taxes, maintenance, etc.) and then some.

You'll be able to defer a bunch of tax with this purchase. 

What started as a promising BRRRR ended with us making the tough decision to sell at a loss after an unexpected disaster.The Numbers:Sold for: +$230KPurchase Price: $115KClosing Costs: $3KRehab Costs: $105K ($49K original rehab, $56K additional repairs due to the car crash)Holding Costs: $31K (12 months)Selling Costs: $16KInsurance Claim Recovery: +$25KNet Income: - $16KWhat Happened:This was supposed to be a BRRRR.

Years ago we didn't require it and just recommended it to the tenant, but it's so cheap and gives our insurer something/someone to abrogate against should we have to make a claim that we don't allow it to be optional anymore. 

I forgot to add that the insurance and tax is included in my mortgage of $2,005.

It’s a tax office, so I suspect they might be waiting to see how their business performs and the impact of technology before deciding.Thanks in advance for any advice or insights you can offer!

@Tar-U-Way Bright Using your LLC for real estate ventures offers legal protection and tax benefits.

No reason they could claim discrimination for a rent increase.

Stationed there almost three years, sold with profit and tax break for how long we lived in the house.