In both you are now paying taxes on an additional $1K/mo.

Essentially, it was one account with the bank tracking individual tenant details on your behalf.That said, it’s critical to ensure your financial records remain accurate by reconciling the account on a monthly basis.

My goal is to ensure that I hit the 1% rental return per month.

If a cost segregation study was performed, the accelerated depreciation may further reduce the property’s basis, potentially increasing taxable capital gains when sold.Depreciation recapture will occur when you sell the personal residence, so it’s essential to keep detailed records of all depreciation claimed while the property was used as a rental to ensure accurate tax reporting at that time.This post does not create a CPA-Client relationship.

I would consider selling one of the properties, paying off the debt, creating a reserve for your remaining investment, and ensuring you are 100% financially stable before you invest again.

Again, this is a factual action that will ensure that you remain in control of your property and that the other tenant has the peaceful use of the property that is a legal right.Fun, huh? 

I used the 75% rule on the income and added it and my DTI without the rental goes from 24% to 38%.Or does it just allow me to just take the net profit of that rental and add it to my rental? 

This approach gives you the opportunity to thoroughly screen potential tenants, ensuring they align with your values and standards.

However, before you do so you should ensure that your revenue from rental income covers ALL your property expenses in the townhome, including mortgage, taxes, insurance, maintenance/repairs, vacancy, property management, etc...

The main challenge was ensuring all logistics aligned for a same-day flip, but preparation and collaboration with Archie made it seamless.