I would be very surprised if this was accurately done.That means you are cash-flow positive after depreciation of $1,666 per monthIf the return was filed, you may want to pay another accountant to look over the return to see that it was done correctly.Yes, buying another property, given today's condition of high prices and high interest rates would likely decrease your rental taxable income.

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

Great conversation, thank you all for your tips!  

The tax code defines a real property trade or business activity as “any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business.”2. 750 Hour TestYou must spend more than 750 hours participating in real estate business activities during the tax year.

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Given my credit is terrible but I only want a small amount of money what kind of rate do you think would be fair?

Review the seller’s maintenance records to identify any existing issues or potential problems.Do your financial analysis to factor in the current rent, estimated vacancy rate, maintenance costs, property taxes, and insurance to determine the property's projected cash flow.

I don't want to move the property to an LLC right now since I am looking for a refinancing opportunity when interest rates go down.

Since it requires a more in-depth conversation, it is always better to be prepared than surprised!

Will the renovation bring in a higher rent rate and pay for itself?