Some ok'd having the rent automatically deducted from their account every month thru erentpayment, others pay me thru PayPal.

If he sells to me now, he will have 2.5 years of the costly Section 1250 depreciation recapture (25% fed and 4.6% state) which he deducted while in a 15% bracket.

Also, you will have a hard time justifying that you made the payments and will risk not being able to deduct the expenses.

It basically allows you to take deductions in the year the losses occur and the ability to deduct passive losses against your ordinary income.

Numbers still look good though. 60k to grab 18k a year net income is not too shabby (I'm not deducting anything for depreciation or income tax).btw: That would be the one other thing I might suggest a change to.

These 2 states have reciprocity stating that any taxes I pay to Indiana will be deducted from what I owe Illinois.

I was able to retire @ 49 but REI is NOT retirement its more like maintaining an expensive mistress with benefits.Every dollar I could save went into properties & I never had a 401k until I needed it for a tax deduction.

I would suggest looking at numbers, and I think you could do better with a portfolio loan that offers no PMI, and you can still deduct all of your interest, rather than taking advantage of the tax credit and being stuck with PMI for the life of the loan with the new FHA rules and the high fees that come along with FHA.

NANA, principal payments are not deductible.

Of course, to quickly get $100k into the Solo 401k, it'll require a rollover from other accounts, which could be 401k or IRA accounts.And many employer 401k plans will not require the loan to be repaid at temination of employment, you'll just continue making payments to the plan sponsor as you did before (just not through payroll deduction).