But increasing your interest deduction is incredibly bad.

Stop renting: Purchase an income producing property that I can also live in4.

(never as an employee by the hour, too much liability)That's nice of you, but it sounds incredibly risky to me.

You have asked an incredibly broad question that is almost impossible to answer.

Every 40-acre tract of land was sold in about 18 months - all using seller financing provided by my father.My father had all the property sold and producing a cash flow Before the first payment was due to the poker player.This is an excellent example of how to invest in real estate without the burden of debt.It is also an excellent example of knowing the details before negotiation begins.My father’s situation is also an excellent example of being extremely good at what you do.

Not to mention the cost of getting a new tenant (especially if you have a property management company that charges 80% of one months rent to refill).2) high maintenance costs - if the tenants assume that they will not get their deposit back, they would be more likely to trash the units, causing more maintenance costs (repainting, fixing damage, etc).3) lost rent - if the tenants know they will not get their deposit back (perhaps they trashed the place) they might stay in the unit for a month before they move, while you send them reminders that they didn't pay their rent.I assume that you would have to factor in all of these extra expenses when you consider if the property is actually producing good cash flow.Thanks,Brandon

The actual Land Trust document, which specifies the beneficiary, is not recorded anywhere and can only be forced to be produced by a court order. 

If you can borrow money at say 6% and the building is producing a better return than that you are better served taking money out and investing it into something that yields a higher return.

Even if your expenses don't produce enough write-offs to be totally tax free, it should only dig into your rental income and not any W2 income.Qualifying will be tough.

So while our buy in is 25-50k we have an appreciating home, in a great area that is producing both cash flow and the tenants are paying off the mortgage.