Verifying last 2 years of rental history very important!

Living in one unit and renting out the others allows you to deduct 75% of expenses like mortgage interest, property taxes, insurance, and shared repairs as rental expenses, while the remaining 25% applies to personal use.

In addition, you want a separate bank account for the rental property to separate it from your personal accounts.

The best way to start in rentals is by buying in your own area.

I have a rental SFR which will be placed on market on Feb. 1st. 2025 in Elk Grove, CA.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Verifying last 2 years of rental history very important!

We have owned rentals in the past as well. 

Also, I would look at rental rates to property values to determine if any areas are around the 1% rule.

Own and just keep it as a rental longterm/short term rental?