There is no better state than Californ-i-a....or Guanajuato Mexico...

lot going on in this post.first, no way will you get a 5.5% on a non occupied investment property.(2) you *may* end up with positive net income on the property without having the mortgage writeoff - this means a visit from the tax man. as an investor, the "write offs" or tax deductions you will receive, if your business entity is structured correctly and your CPA knows what he/she is doing and you keep tabs on it, will far exceed any write offs you will earn anywhere else...look at it this way...IF...you HELOC...taking 100k out of your property...now you've got 100k to invest in an reo or other distressed property - CASH...real estate is about leverage...but with the CASH purchase, it frees you up to do many different things down the road...IF...you "buy right" (below market value > 30%) - combined with the CASH purchase, you'll create a return on your investment that is EXCELLENT.if you took an arbitrary 100k (from anywhere, say it grew on a tree) and you stuck it in a savings account earning 5% (which is a lot for a savings account)...compare that to the 20% return you'll get off the monthly cash flow from a good rental...not to mention depreciation..and future leverage options available to you through this investment...the returns just compound.now this all deserves a qualifier...we don't know the specifics of your current home, your finances, what you owe on it currently, other debts etc.all that must be taken into account.

All responses are great and have nothing to add with an exception of one thing:In the future, do videotaping the premises prior to moving in and just after moving out (before leaving key to the landlord or countertop).I, as a landlord, videotape everything before tenant moves in (with new tenants on tape) and after they move out.How everything do I mean?

Just thought I'd stop by and introduce myself. I'm a 25 year old construction worker. I just finished my first ever real estate deal breaking up and selling some land I inherited. I must admit that I have now been bit...

Like you think to yourself and you know that you're a: plumber, a mechanic, a sales man, a student, a truck driver.

It's a 3 bedroom 1 bath 1200 sq ft SFH in Marion, Iowa.

Lots of times people don't fully understand the tax code and they have nightmarish ideas of the tax man as that guy from The Texas Chainsaw Massacre showing up to chop off an arm and a leg to collect as taxes when it's really not such a horrible thing.

Aly NAHaha yeah that's what I used to say until I got a call at 1 AM telling me a tenant in Iowa busted the water pipe and it flooded there basement.

I don't see anywhere that I acted like I as a 'big' fish.

Save your money young man! A