Hi Shree,Make sure you have a business privilege license and get a tax account number before you apply for the rental license.

I would pay the same income tax and add fica on the sched C.

As you know, Florida and other coastal areas have been hit with some pretty catastrophic hurricane damage in recent years, and the same insurance carriers who have been paying out those claims are the ones writing policies here. 

Here's a PARTIAL list:Office rentComputers, printers & softwareInternet & phone billOffice furnitureOffice supplies: paper, postage, ink, etc.Office liability insuranceAuto expenses: monthly payment, insurance, gas, maintenance, registration/plate feesBroker license fees: annual, monthly board & MLS fees, continuing education fees, E&O insuranceEquipment: lockboxes, signs, etc.Business income tax preparation and paymentsStaff payroll & payroll taxes Time Tasks: answering phones, calling past due tenants, scheduling tours, taking marketing pics, processing those pics, writing ads, researching rent amounts, posting ads, explaining to owners how rent determined & showing where ad posted, opening & processing mail, posting payments, bank deposits, scanning documents & posting to owner & tenant portals, explaining accounting to owners so they understand their monthly statements, taking pics/videos of repairs, finding reputable handymen and contractors, confirming they're properly licensed & insured and tracking annually, verifying repairs done properly, processing invoices for utility bills, repairs, taxes, city inspections, scheduling periodic property evaluations/inspections with tenants that don't want strangers in their homes, explaining to owners why taking so long, and more & more & more...

First, you have to buy it on the courthouse steps to claim ownership - that is required to rent out the property.

We wanted to build a cabin for us but learned there is nothing and off grid so it has been sitting there for last three years and paying the property tax. 

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

As a Tax Baby I finally figured out after 50 years how to offset my tax burden through real estate! 

Upon default, our deed of trust specifically allows us to require the borrower to prepay into an account to cover insurance, taxes, or any other unpaid obligations.

I also have about $60,000 in a Traditional IRA that I thought of pulling, but the taxes and penalties might be far to great since I am 44 years old, not 59 1/2, but is still an option.