Operating expenses (what you spend on the business), interest, and depreciation.

Or, would it be better to just not operate under a business name and just claim the money on my taxes.I am also concerned if I file a dba, that I will get over taxed.

The rule is said that operating expenses will "average" 50% of gross rents all across the country.

Check for slow drains, too, and run hot water down the kitchen drain for ten minutes to help clear any grease buildup.Also, check the number of toothbrushes to see if extra people are living there; check smoke detector operation (has TENANT removed batteries?)

Plus whatever it might need to be operable.

The purpose of an LLC is to protect you and all your personal assets outside of the LLC in the event of an unfavorable monetary judgement against the LLC.I agree with the other posters that setting up an LLC can be simple and inexpensive.But would I be willing to "bet the farm" on my ability to do everything required exactly right to remain out of reach of litigious hyenas?

This is what it looks like.6plex Sales Price $325,000 Loan Amount $260,000 Interest Rate 7.125%Term in Years 30Loan to Value 80.00%P & I $1,751.67(This loan is through an Alaska housing program for which both this property and I qualify for.)Total Rental Income $57,600 Less Vacancy 10.00% -$5,760Adjusted Gross Income $51,840EXPENSESTaxes $4,584 Insurance $2,580 Utilities including Refuse/Cable $9,661 Management $4,725 Maintenance & Repairs $1,000 Replacement Reserves $1,800 Miscellaneous $1,000 Total Expenses $25,350 Net Operating Income $26,490 Total P & I $21,020 Net Cash Flow $5,470 = $455 per monthI know that the cash flow doesn't look that great with the property management cost but it is required to be factored in for this program.

They were speculators betting the price of housing would continue to appreciate, and they would make money when they sold.

So RE is so powerful because you get tremendous tax reduction benefits (depreciation, interest expenses, all operating expenses, and depreciate your capital improvements) all the while you've leveraged your investments, your tenants are paying your mortgage down for you, inflation is eating away at your mortgage, and you raise rents over time.

You bet, Josh.