Property taxes are 650, insurance 160, outsourced property management takes 10% of the rent, and another 10% of the rent is set aside each month for future repairs. 3750 x 0.8 = 3000. $3000 profit, minus about $2300 in mortgage, property taxes and insurance leaves about $700 cashflow, when I move out.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Positives are proximity, low property taxes, no income taxes, no weather events, very low maintenance stucco/tile structures, “young” properties (5-20 years old) 

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow. 

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

If you live in a state with its own income tax, you might be allowed to credit your Illinois tax against your own state’s income tax.

A successful rental property should offer positive cash flow, meaning your rental income should exceed your monthly expenses (mortgage, taxes, insurance, maintenance, etc.).To find the right tenants, ensure the property is priced competitively within the local rental market.

@Brandon MorganAn LLC will not reduce your taxes.

I do like the tax benefits and leverage.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.