You can not deduct the down paymentYou can deduct any costs you incur to upkeep the property(Repairs, insurance, taxes, depreciaiton, etc)Whether you can offset the rental loss against other forms of income depends on whether the property is considered active or what your income level is.

Most tenants appreciate I upkeep my places and I am friendly with them but do hold them accountable when it comes to a tenant following the rules of the lease.

Not to mention the upkeep of the new property, and its loan stress.

Having no cash reserves would be a problem with or without a mortgage since most of us have other costs (taxes, insurance, upkeep, HOA, utilities).

For a low maintenance tenant, $120 per month might seem like a ton of money to give someone else to simply deposit a rent check.But if the tenant calls a few times a month, constantly complains about property upkeep, is late on their rent or does any lease breaking activity, that could require hours of your time a month.

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California could cost you a minimum tax of $800 every year.

My own neighbor is thinking of selling his house, which is in need of repairs, just so he can move to an apartment and he doesn't need to worry about upkeep anymore.

But they forget they need money for upkeep and maintenance and reserves.

The LAST factor in pricing variation, which we saw the last few years in greater weight than ever in my life-time is OPPORTUNITY COST.

Think about the weight of all that glass and china.