Almost every action taken in the economy is taxed and the faster the economy chugs forward the more taxes they collect.

The surplus line broker shall collect the Ohio tax of five percent of the amount of the premium for the insurance policy at the time the insurance policy is delivered to the insured."

However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

The contributions are lower so it takes a while to build, but once you do, it's tax-free investing. 

. $418,000 @ 3.125% on a 30 year fixed is $1,790.61 - what is the remaining $1,171 - taxes and Insurance?

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.

My question is do I have to recapture all the depreciation for tax in 2025?

While property taxes are higher, the long-term upside is strong for investors looking to build equity while maintaining a solid rental base.If your focus is slow and steady wealth-building, Memphis, Little Rock, and Oklahoma provide great value and predictability.

In Michigan, the ultimate garnishment is state tax refunds (federal cannot be garnished).Not seeing how you are going to successfully do this on your own - remotely:(