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).

Basically:* Our AGI is past the point where we can deduct any passive loss carryover against regular income

So, in many instances, these renter families may be paying more than whatever tax deductible mortgages might cost them.

He has homeowners insurance, but can't/won't pay the $2000 deductible on a $6000 claim.

Some people may like the option of using that income to fund a solo 401k or other types of plans such as an HSA, solo 401k, SEP IRA or use it to get a deduction for self employed health insurance costs.All of us accountants SHOULD specialize in lowering your tax liability; however, not all are as good of experts as they should be.