Using loans also allows you to scale up quickly and get the mortgage interest tax deduction.

My out of pocket expense thus far is $1200.00 for cleaning carpet, replacing carpets, new flooring, sheet rock etc etc.The question is do I let this tenant off the hook or hold their feet to the fire and deduct it from his security deposit?

The interest still provides a deduction against your taxable income, also.My $0.02...

Even better if you can close by December 31 and get the tax deductions!

My mom remitted $5,000 to the property manager and requested that the remaining $575 be deducted from future rent.

When we did the calculations we were looking at about 4k per month of income on average due to 2013 giving me an income of (after tax deductions) about 13k even though I made closer to 23k.

That rule says that you start with the After Repair Value (ARV), multiply it times 70% and deduct the repairs and your desired assignment fee to determine your maximum allowable offer (MAO).Your best strategy at this point is to build a database of all real estate investors in the area to which you can market your deals.

@Levi FoxWelcome to the site.

Our originator did say that if were to have had any child care deductions on our 2014 taxes the VA might not have accepted that ratio.

But as I understand it, if you cash out money from a rental and don't reinvest it into more real estate, then the interest on the loan that you refinanced is only PARTIALLY deductible.