@Bailey RentzStessa is an excellent platform for tracking income and expenses for investors; it is user-friendly.

Consult your local CPA to calculate accurately and minimize your tax liability.

The rental income from the first home will pay for the mortgage/monthly costs.  

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

The interest on the rental is an offset to rental income, and is by definition deducted from your taxes.A 4% interest rate on a primary is like a 4.88% after rate for a taxpayer in the 22% federal tax bracket, or higher if in a state with state income taxes. 

@Anshuman ThakurThere are some very good advantages to investing in Nevada, low property taxes, no income tax, and landlord friendly.

But, you still own house and benefits are as follows.1. tax benefits2. principal payoff on your note.3.

4 houses: value $6.5MEquity: $2.8Mpositive cash flow after debt, maintenance, taxes: $2000/modo I have additional capital to add?

The exact steps depend on the nature of the defaulted debts and on your local laws.State income tax planning.

After closing, when the property taxes were due I never received any bill.