It’s also important to sit down (or have a virtual meeting) with your accountant on a quarterly basis to review your financials.Tax deductions are maximized.Ensure you’re getting proper tax planning done throughout the year, so you are minimizing taxes.

Hi Babu,A simple rental property balance sheet will have the following accounts:Assets: Cash, tax and insurance escrow, fixed assets and depreciationLiabilities: Credit cards, security deposits, and loansEquity: Opening balance equity, owner's contributions/distributions, retained earnings and net incomeThere could be a number of reasons that your balance sheet does not balance.

Also note the loan will show on your tax returns.

No W2s, 1099s, tax returns or paystubs needed, and no DTI calculation.

For instance, if we had 5 AC units go out, I couldn't cover that on a dime without outstripping my capex and tax savings, but I could probably pay off in a few months.

Assuming you are at 80% LTV or lower, you do not need to escrow funds and can pay your own taxes and insurance instead. 

Should I pay state tax on the one that shows positive even though the entire portfolio is at loss?

If the tax deduction for investment was limited that first year because of the amount I stayed then that's just what it is.

You will be entitled to a partial 10-year tax abatement from the day you pay for the permits.

I paid him and we did a quick claim deed.