You are (almost) living the dream life of my younger self - Mine would have included some white water, skiing and SCUBA - but enough of that So lets talk REI - If I were in your (rock climbing) shoes, here is what I would do - Use your 100k to pay cash for your first investment - you should easily be able to find a property to generate the $1,000 / mo with a $100,000 investment - Here in the houston area, we can get about $1,000 with just a bit more than $100,000 --- maybe $110,000 - $120,000  and that looks like a < 10year old home in a great neighborhood - but I'm sure you can get better returns with something less expensive in the midwest - Next I would just continue to enjoy your life and work occasionally while saving a bit of your income for the next purchase --- when you live below your means, it has a tendency to pile up pretty quick -- once you have a few thousand in passive income, you should be a more attractive applicant for financing to to accelerate your acquisition rate - The good news is that you are starting super young and it will be difficult to keep from acquiring a massive portfolio by the time you are at most people's "normal" retirement age-The other option (and less desirable in my opinion - although probably easier in the beginning) is to find someone with a good job/income, but zero money to invest (this forum has them coming out of the woodwork) and partner with them on the purchase --- use part of your $100,000 for down payments on several and keep a bit in reserve for emergencies--Whatever you do, you are way ahead of the masses- Enjoy the lifestyle and Happy Investing,jeff

And then after you are in a relationship......hard to find....at end of project, make-up mode to get my last deposit and reassurance that he gets my next job!

Other than the recapture on depreciation due, I believe, in the year of the sale, the rest is pretty straight forward.Interest received is income, interest paid is deductible.Down payment, pay off at end and Principle received is prorated between return of basis (no tax) and cap gains, taxed at cap gains rates.

Hello all, I am Eric Tao, active military currently stationed at Fort Hood.

I checked and he had some previous loan modification back in 2008 or 9 something like that with a balloon 80k payment at end of mortgage or some such thing.

Based on your market and their personal situation, lost job, I would not renew at end of lease.

See active participation checksheet at end of chapter.Sub-Issues The activity must consist of rental real estate (not an equipment lease).The taxpayer must have “actively participated” in the rental.The MAGI must be less than $100,000 in order to obtain the full $25,000 benefit.Active Participation Sub-IssueAs long as a taxpayer participates in management decisions in a bona fide sense, he actively participated in the real estate rental activity.

I will soon to be real estate investor, as I'm going to be buying my first property, (a tri-to-fourplex) to buy and hold, and "house-hack" in the greater Seattle/Tacoma area.I have just been pre-approved for financing, and I have a few prospective properties I'm looking at with my agent, but I haven't talked to a real estate attorney yet, and I'm curious if I need to discuss my plan with a lawyer to 1) become educated on the local and general land lording laws, 2) form a rental/lease-agreement for my future tenants, 3) Advise me on a corporate entity to form to hold this property under, and 4) help me steer clear of anything illegal I may have a tendency to do before I actually do it.

By the time you add in loan fees, points and high interest, they often make as much or more than you will.Private lenders are sometimes more affordable but they have a tendency to think they are your "partner" in the deal and will call every few days asking about the status of the project and when it will be complete.

Maybe the lease agreement has some form of "rent escalation" clause, where an automatic rent increase occurs at end of lease term at the renewal.