I'd also like to utilize it down the line and use a cash out refinance to purchase an even bigger property.

Assuming this is correct, my question is where to I put all of the carrying costs (mortgage interest, taxes, insurance, utilities) as ecoenses in the LLC?

Single family home in need of some TLC for sale in western PA for $39,900.Median house price in the neighborhood $75-80kAverage rent for a similar property in that zip code $850-$900I would be putting down 20%, 5% interest, 30 years.Allocating $15k for rehabTotal cash needed $24,177Rent: $900/moVacancy: 5% ($45)Taxes: $238/moHome Insurance: $38/moMaintenance: 8% ($72)Capital Expenditures: 8% ($72)Utilities/Landscaping paid by tenant. 

I'm sure there's a market out there for this type of material. 

My tenants all pay their own utilities.

If you have the cash at the end of the year, don't forget to make the Dec 31st purchases for all of the materials you will be using throughout the year to capture them in the year prior.... 

I calculated roughly sending 800-900 per month after all expenses such as all utilities, PITI, repairs, etc.Is it worth losing a little money each month to live in a nice house that we actually own as opposed to renting?

@Jonathan Bolano if you are utilizing HML, then it’s not a cash deal.

Hi Mike,  Typically tenants pay for all utilities, except for a few rare cases where you will pay for the water.

And for the sake of conservatism, let's guesstimate that the total expenses of the property (maintenance, water utility, property tax, insurance, management, and vacancy) will equal 50% of the monthly rent, or $250/month in expenses.So, thus far, we would be earning $250/month, or $3,000/year.