Lots of depreciation you will pay no tax maybe even shield some W2 income.B.  8k maybe 10k if you pick the right guy to lend your money to in interest income you will be paying much higher tax rate on this income FYI no depreciation expense. 

So if you have the property for a total of 10 years, moved in at year 8, little value or tax advantage.

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year).

All-In Costs & Profitability-ARV: $450K-Purchase Price (financed): $170K-Repairs: $150K-Holding Costs & Financing: ~$20K–$30K (insurance, taxes, utilities, interest, etc.)

This would allow you to indefinitely defer all of the tax if you sold, and use the tax you would have had to pay, to purchase something nicer in an area with a greater growth potential.   

.• Public Records & County Websites:Local county appraisal and tax records can be a goldmine for owner information.

Mgt, Landscape/Snow, tax, insurance, utility then debt service. 

I know some investors use them as a tax-advantaged way to grow their portfolios, and I’d be curious to hear your thoughts on that.Looking forward to your insights!

At year end you’ll get a summary and a tax form.