Good Day All, I have a large portfolio of rental units of various sizes in Rochester, NY. 

However, I was also thinking of paying myself from some of the earnings as a 1099 employee simply so I would only have to pay self-employment tax on what I pay myself and not all the earnings, so filling taxes as an S-corp. 

Hey Guys, I'm about to go the self employed route and need a little help with how do setup my personal income taxso tell me if I'm going about this right....Heres just a simple example1. 5k rental income- 2k expenses - 1k (salary I pay myself) = 2k net profit - 3k (depreciation) = -1k loss for loss on rental2. 1k salary * 15.3% (med/SS tax) = 153 paid in personal taxes so far3. deduct health insurance/ 7.65% (half of med/SStax)  from personal income 4. carry the 1k business loss to my 1k salaryEssentially not paying rental income taxes and also basically just paying 7.65% of taxes on the personal salary I pay myself.obviously just an example but just wondering if Im looking at this the right way?

It's also been completely renovated, although it's on the smaller size, square footage compared to other houses in the neighborhood (1,500 sq. feet).  

Just be aware that most lenders want to see a full year (most of the time two) of self employment income to qualify you. 

Here are some thoughts for you.A lot of lenders will want two years of work history in one field of employment.

Never get focused on the amount of settlement, because the overall scope of work is what will determine the size of the job.  

Say there is a 4 unit property where each unit is the same size. 3 of the 4 units are occupied the entire year and the remaining unit is vacant the entire year.

You are employing them and you can switch.

With those size properties you can generally get better loan terms because they are still classified as residential.