A few other thoughts, if you want to get down to the nitty gritty about the bottom line, though some of these stats are relevant whether you sell or keep the prop: -expected appreciation over life of investment -equity bought through mortgage payments -benefit of the interest home mortgage interest deduction in terms of saved (or shielded) current annual income -a 10% misc operating expenses bill tacked on -a 4%-12% vacancy rate average depending on local norms -25% recapture of depreciation -cost of improvements that will likely become necessary if you keep the house for 10 years+ like new roof, new water heater, new carpet/floors, etc...minus the depreciation you can claim for each over time -whether you've held the property for at least a year, which will impact the classification of short-term cap gains taxed at personal income rate, or long-term cap gains currently taxed at 15%.

Good way to contribute % of annual income and, yes, that reduces my taxable basis.

Suppose:$15K loan20% annual interest rate1 year$15K * .2 = $3000 in one year.

At this point, I have my team and now and going into the funding phase, so I will keep you all updated.Best-The Wolf!

And others have recommended just purchasing an umbrella policy, stating that it'll serve as the same function as the former two, without the added expense of the &200.00 annual filing fee for the sub chapter S.

Accoridng to an analysis tool I have used, I can expect the following:Gross Operating Income: $11,500 (allowance for vacancy)Annual debt service (at 7.5%): $8810.16Taxable income: $7,310.17Net Operating Income: $7,990.00Cash flow before tax: -$820.16Cash flow after tax: $1738.40ROI with appreciation (assuming 5%): 33.39%Cap rate: 6.95% (I don't know what this means -- can someone explain?)

YOu enter in all the pertinent details and it will give you your annual cash flow, taxes consequences, and tons of other info.

Black Wolf,I'm coming into this conversation a little late, but I think I can offer you some help here (or at least some advice)....let's recap a minute.You want to purchase a rental property in NY.

SteveGent, I don't have an answer as I'm a newbie, but I'd like someone to comment on an issue that crossed my mind when I looked at your numbers.It appears you will be earning 2166.12 annually on an investment of 50,000, if your assumptions are accurate.

Once achieved you can act as a loan wolf.