There are some benefits to having an LLC on reduced liability, but there are more expenses. 

Hi everyone! I am looking at purchasing a vacation rental in Costa Rica and I have a couple of questions in regards to that.  Firstly, does anyone have an international lender that they would recommend?  Secondly, doe...

Firstly, it often generates higher rental income compared to long-term leases, particularly in desirable locations or during peak seasons.

So I do not have a tax filing with the rental income on it yet.

The loss created by section 179 is limited to your total net taxable income amount from all "active" business income you have, plus any W-2 income. 

I have dabbled in real estate, but never heard of brrrr before now, and transparently never did much research outside of knowing that property ownership was a way to reduce my taxable income. 

If I were to reduce or take out the vacancy, the 2 would cashflow.

Quote from @Raghavendra Jakkani: The tenant should provide proof of income that doesn't require detective work.

The down fall is a Heloc can "Never" be used as an asset or for PITI reserves required when buying a new Primary or investment property.A heloc can also cause major issues with credit and one slight hiccup or missed payment the bank or lender who is holding the Heloc can close or reduce your line of credit.

I'm confused why would you say that rental income is taxed in an IRA?