At different price points in the retail investment market, smaller private investors often pay cash to leverage 1031 tax-deferred exchanges and focus on long-term investments for estate planning purposes.

Short back story - Became debt free after paying off $30k - Currently have $25k saved - Have been doing research, listening to podcast, read the book on rental property investing by Brandon Turner, and became a ProMember of BiggerPockets (learning how to run numbers with the tools here). 

Hi All,I am looking to get input from people who file their tax return using the Professional Real Estate Status.

And the good news is they go away in the future against higher taxes and tax rates.

More details:Mortgage (principal + interest): $2930/moProperty taxes: $15K/yearHome insurance: ~$1K/yrCost of home ownership/month: $4280/yr (not counting for any tax deductions related to the interest and property tax)If I account for $20K of interest and $10K of property taxes as an income deduction, then I can reduce the cost by ($30K x 35%) divided by 12 = $875 per month = $3400/mo cost of owning the houseRental income after 35% federal income tax + 9.3% state income tax = $2618/month (!!)

High appreciation markets have higher rent growth.  2) prop 13 basically means property tax increases will be small (2%) regardless of the appreciation or rent growth. 

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).

If am lending personally am I able to write off taxes from the interest from the HELOC, or would I only be able to do that with an LLC or S-corp?

Does anyone list particular debt limits (like, "no debt in excess of $1000 that isn't in a payment plan") as part of their screening criteria?

As far as the pricing for debt, banks will typically charge 1% as the originaiton, doc prep and construction debt is generally priced at WSJ +.5-1 point.