Even so, the bottom line on Schedule E will often be zero, because the rental income will often be fully offset by deductible expenses.Step 6: Write off the personal-use percentage of mortgage interest and property taxes as itemized deductions on Schedule A of Form 1040, subject to the new Tax Cuts and Jobs Act of 2017 (TCJA) limits for 2018-2025 (see “TCJA changes affecting vacation-home owners” below).You are allowed to carry over any disallowed allocable indirect expenses to future years when you can deduct them against rental profits (if you ever have any).Controversy regarding how to allocate mortgage interest and property taxes The IRS says you should use only actual days of personal and rental usage to allocate all non-direct vacation-home expenses, including mortgage interest and property taxes.

It's OK to utilize generic percentages when conducting initial analysis, but once you identify a property that may be worth pursuing, I always feel it's best to know how large of a furnace i'll need based on the square footage, what the current state of the plumbing and electrical are, does the home have large decks or long driveways that will eventually bear large expenses that you may not incur elsewhere. 

If you have other partners and don't want to affect the ownership percentages draft a note stating he terms and conditions of the loan to the LLC.  

I understand that, as a buy-and-hold investor, it is important to set aside a certain amount of cash in order to cover maintenance and capital expenditures.It seems a bit odd, though, that these are typically expressed as a percentage of the gross monthly income.

In a lot of leases, holdover tenancy will result in additional rent, sometimes at an increased percentage.

@Tom PortThe down-payment percentage can vary.

As to where you should be searching for Multiplexes, I have provided you with a map (see below) of all of Dallas County and the percentage of properties that have 5 to 9 units for various sub-markets.

In your opinion, is an acceptable percentage of ground lease rent of the total gross revenue?

The lists I have purchased are for targeted areas with absentee owners and another list with high equity percentages. 

For signing on the loan, you can give him a percentage of the deal or an upfront fee at closing.