Furthermore, during the rental period, expenses like repairs and insurance were deductible, but these deductions end when the property becomes a primary residence, with only mortgage interest and property taxes potentially deductible as itemized deductions.In short, converting a rental property into a personal residence can provide some tax advantages, but you’ll need to account for taxes on both the depreciation and the portion of the gain from the rental period when you eventually sell the home.

You can use this cash for any purpose, such as home renovations, debt consolidation, or paying for major expenses.

So your cash flow is decent, but after you’ve had a few turnovers after 10 years and have had some cap ex expenses, you’ve broken even or gained very little since the home hasn’t gone up in value much.

Removing trees is expensive (trust me) and they do have benefits like shade and privacy.

As rents and home prices rise, long-time residents are being squeezed out.Worcester is increasingly becoming a bedroom community for towns like Marlborough, Hudson, Natick, and Framingham, as those areas become more expensive.

However, this year it was crazy with the cap. expenses. 

I am NOT operating to where a late tenant payment affects my ability to manage my rentals and pay my expenses.

Interest Rates and Mortgage RatesImpact on Buyers: Higher interest rates can make borrowing more expensive, reducing the pool of potential homebuyers.

It has also gotten much more expensive unless you are willing to do such high deductibles that it makes you feel uncomfortable.2) Remodels: Not only is cost of construction high, but homes are only getting older, which means the projects are getting more extensive.

Once all three units are operational, you’ll have three income streams to support your expenses.Evaluating if it’s a Good Deal:Cash-on-Cash Return: After figuring out your total investment (down payment + repair costs + holding costs), calculate your net annual cash flow (rental income minus expenses like mortgage, repairs, insurance, etc.).