My question is what are the tax implications of this?

Though we can do that, LLC is preferred by most of my clients.o Individual credit will be used for determining max leverage (80% LTC is highest available) and interest rate.o Personal income, taxes, and debt-to-income ratio will not be utilized.

If tax returns and DTI is an issue look at private institutional lending. 

As it is we both have a strong desire to buy a SFH for ourselves but currently house hacking is a better solution because that other rent is paying our taxes and water and sewer bills and for some mid range priced renovations to the property.

If your bookkeeper and tax pro like Quickbooks, you should use that.

@Hemant Jain My only advice on investing in Texas is to be careful about the property taxes.

These supposed tax savings though… where are they?

Factor in the cost of property insurance and taxes, as these expenses can impact your cash flow.

It's the closest city outside California and with the 4th lowest property taxes in the Nation, no state income tax, and landlord friendly NV is a great environment for investing.

Hi Kristin,Most DSCR lenders won't check your personal income/tax returns.