Use umbrella insurance as an additional safeguard, especially if you opt not to form an LLC.Avoid S-Corp taxation for rentals, as rental income is passive and not subject to self-employment tax. S

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

Apologies if I missed prior posts asking the same thingI want to take advantage of the low down payment requirement however need to find a lender supporting this loan type.Can you please provide any recommended lenders for Homestyle loans (or even 203k) that serve DFW? 

California does not recognize Real Estate Professional (REP) status, but you can still claim it on your federal taxes if you qualify.

Taxes: Be aware of potential transfer or capital gains taxes, depending on your state.4.

Would recommend.I will be using the firm for my 2022 tax return (1040 and 3 LLC's), expensive (about $5k-6k) but given they've assisted with the tax planning I'm hopeful the synergy will provide the best outcome.Happy to answer any add'l questions.Pat  Hi Pat,Just want to confirm, that is HallCPA fee for filling 2022 tax for one 1040 and 3 LLCs?

Be sure to hold a hefty reserve to handle on-going maintenance, capex, taxes, and insurance.

Quote from @Zara Massoud: Your new PM is correct and the old ones were wrong.The property manager must have your social security or tax ID number on file.

It’s definitely smart to evaluate the tax and cost implications of your funding options.

I used to live in the city and the taxes and water bills are nightmares.