Given that my first investment property’s gross revenue and cash flow, both are going to be small.

@Eugene PhuaThere is an election you can file where not only you can deduct your expenses from gross rents, but you are also taxed at lower rates on marginal income.

One company charges 10% of gross rent, with a 50% releasing fee but doesn’t charge anything for service calls or maintenance.Another charges 5% gross rent with no releasing fee but charges by the hour for repairs and maintenance so they end up Nickle & Diming you to death.I think one months rent is too steep.

There is an election to treat rental real estate as ECI allowing all deductions against gross rents, and taxed at marginal rates.

As you can see in the Excel screenshot, I put all the data that the ad provides (460K gross income, 112K expenses, 348k for NOI.

Based on my understanding I would need to pay taxes on rental income and there’s 2 ways on how to do this:1) Need to pay 30% based on gross rent income....2) Or, I can apply for an Individual Taxpayer Identification Number (ITIN) and pay X% based on net rent income - as i can apply deductions towards expenses...So my questions are for option (2) what is the tax % that applies to the net income?

Even at a 2200 total gross rents and a 150K price point (let's pretend you could get it that cheap) it still doesn't come in at a screaming deal. 

FHA 3.5% owner occupied: 6030 N Claremont Ave : If you pay the asking price of $449,000 and you add the rents listed $1550 +$1285 =2835 ( gross income/month) , taxes $10453/year, maintenance 5% of rent per building/ mo and $1000 approx insurance/year.

Take the % x the gross rent for the year and then deduct that number from your estimated total.  

Payment types"Is their fee based on gross income?