That’s our concern about it penciling out on paper but the reality might be that it ends up costing us money.

Hi Steve, where did you get your property tax estimate from?

I'd be happy to make connections over similar goals, and to learn about tax info for DC, great spots to buy, and trends for rentals.

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

Agreed - plus two additional thoughts:1) I always recommend having your CPA also review the drafted operating agreement for the tax issues. 

Almost every REMIC is in violation of it's tax status.

Baselane has the added advantage of synching with your Schedule E you'll use at tax time to file your taxes.

Generally speaking, with SFR or small multis, I just rely on the lease/rent roll (and some form of proof of payment; i.e. bank statements, deposit receipts, tax returns, etc.). 

Hi Jon from Boyertown, PA-You and your fiancé are interested in buying your first short-term rental and wonder profitable areas to purchase with a budget up to $500,000.I would look at places along the west coast of Michigan, Grand Rapids, Kalamazoo, and near Ann Arbor, MI.It is important to understand the local STR regulations in each community and partner with a property management company that can help your navigate that and manage it well for an excellent guest experience.Don't forget to look into bonus depreciation and doing a cost segregation study to increase the tax benefits of ownership and if you "materially participate" in the management of the property per IRS guidelines it can offset active W-2 income which most real estate cannot.To Your Success!

I would love to explore the rest of the US - if I had the money.