After years of studying entrepreneurship, i hear this is a common trap you don't want to fall into.

Originally posted by Account Closed:Originally posted by @Matt K.

I plan on working with an accountant once I have purchased a property but wanted to get an overall understanding of the tax writes off before purchasing a property.

The book is basically what every MBA spends 2 years or so studying about cash flow, condensed into 200 or so easily-digested pages.

(I super simplified this not taking into account reduced interest from accelerated pay down)Example 1:Mortgage 150k (paid down additional 50k) and 50k needed for next downpayment.Monthly mortgage payment $1000 (not including taxes insurance etc)Cash left after 2nd purchase $0Example 2:Mortgage 200k, 50K needed for downpayment, 50k in reservesMonthly mortgage payment $1000 (not including taxes insurance etc)Cash left after 2nd purchase $50kWhich example looks safer?

This tax is a rent grab- an attempt for the city to increase revenue without providing any public service or accountability for the use of the funds.

After accounting for 8% Vacancy and 10% CapX and 10% management you'd be left with $212.41 in monthly cash-flow ($70.80 / door).

Account Closed sorry for the late response!

So keep your documentation and accountant correspondence handy if questioned.

I'm trying to get a solid number so I can account for the additional insurance on my analysis.