As your rental income is greater, then you'll pay taxes on the rental income thats not wiped out by your losses. 

And I have a baby due in August!!

Work at a Bugatti dealership4.loiter around a dock full of big boats 5.get into politics 6.play at high stakes poker table full of rich people looking to through cash away. 7.get some baby tigers and pay rich people to hold them while you sell them on your real estate deals  

If the house is going to auction, the second could be wiped out, so I offer to pay it off for much less than what is owed.  

And HML can wipe you out if not done correctly. 

Hi Garrett,I posted on this subject a little bit ago, But just know on the news there was a feature about BABY BOOMERS and how they are retiring in hoards to a place like your talking about. 

In my experience these things come in waves, I had to replace a ac on one property and then a water line at another the next month which wiped about 1/3 of my cash flow for the year. 

Also if you're investing out of state and get hit with an unexpected cap ex it's going to wipe your cashflow for quite some time.If you have people you trust and can rely on in other states that will help you manage and run your assets you stand a better chance of getting yourself a well-performing asset.Whatever you do, make sure you pad your proforma by adding in contingencies to your budget and by increasing your projected hold times.

I'd pick a bankruptcy over an eviction, because then the debts are wiped clean, and they have more available income.   

So... anyone in the Lubbock area who is willing and happy to share some knowledge and experience with a baby investor please contact me!