I have even had situations where I had to amend my taxes because the tax person screwed up.

Worst case scenario is they take 8% of your rent money and then at the end of the year you get to take that as a deduction on your taxes.

Your property taxes might be going up if a new plan passes.The legislative proposal -- which passed a key legislative hurdle yesterday -- would classify short-term rentals rented for more than 90 days per year as commercial property for property tax purposes. 

What does the tax ID indicate?

The experience was very poor and began with a lengthy application, asking for all sort of documents including tax returns, rental schedule, voided check, credit check etc, just to get a pre approval letter.

But there's more paperwork and rules to follow.Think about how comfortable you are with risk, what you want to do with the property, how taxes will work, and if you're ready for the extra work an LLC brings.

Not sure if these markets are old news, but I have a friend in Winston-Salem that says its a gold mine, and by all means it looks like it…low crime, good schools, population growth, friendly taxes, and reliable tenants.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

This is why the spreadsheets that analyze real estate investments include lines for vacancy, all expenses, taxes, capital expenditures, etc. so that you can be very certain that the asset can pay the loan payment each month and you don't lose sleep.

Even if you use a large amount of cash for the down payment, you can always do a cash out refinance in 12 months to pull out some of the cash "Tax Free".