The advantage is that your debt rations are better for 15 years, if you have a tight month, you obligation is lower, if it ever turns into a rental, it will cash flow better, the interest deduction is greater in the early years and total interest paid is still reduced.I say on any loan, any secondary market loan, or govt. insured program.

I'm interested in finding out what tax deductions will be allowable if I do a cash out refi on a rental property to purchase and rehab another rental property.

(tax deductible of course).

You still get a tax deduction on the interest and if you do any improvements or repairs while it is rented, you can deduct that as well.

Rocky, I'd suggest a high-deductible plan coupled with a HSA.

Age, construction type and wind deductible can swing those numbers a lot.

I have also found that banks are not willing to look at the property's itemized deductions but rather the net gain/loss on the tax filing, so in my case i had a lot of deductions and write offs that I had a net loss on the property on paper.

Who is paying the monthly tax, can I get tax deduction if I lease option out the property?

If you buy at an up market, you need to pay extra to buy another home in an up market.My guess is you're saying that you think there is a mini bubble going on right now & you want to rent a couple years in anticipation of another downturn.If you can pull it off, great, but highly speculative plus you will lose all of your home deductions.

Your partner should get 1/2 of the cashflow, expenses, tax deductions, and equity.