@Brandon Sok You might want to clarify if the 12% is annual or not. if it is annual then you would pay $15,600 per year.

Essentially any expense related to the property or the maintenance of the property would be deductable. 

This way, they say, they have funds in case repairs are needed.They charge an extra 10% on labor and materials if they have to get maintenance done.

.)- Only using in-house maintenance (e.g. if your one guy can't get to something for a couple weeks then hire a contractor)

When I determined that I would be in NYC for a long time, I bought a duplex in a neighborhood that I liked that locked in my housing costs (including taxes, insurance and maintenance) at roughly the cost of renting.

John, NM is a great state for LLC anonymity and cheap too b/c you dont have to file annual reports.

I’ve only ever owned a few newer single family home rentals in master planned communities that were low maintenance and easy to rent.

But oil furnaces require more cleaning and maintenance . 

Purchase Price: $62000Monthly Rent: $825Expenses:Property Taxes: $500 annual          $41.67 monthlyInsurance:           $874 annual         $72.83 monthlyProperty Mng:    10%                        $82.5 monthlyRepairs reserve:  10%                       $82.5 monthlyCapex reserve:     10%                       $82.5 monthlyVacancy                  5%                        $41.25 monthlyTotal Expenses: $403.25Mortgage: $334.77 ($60625 in principal at 5.25% at 30 year)Cash flow: 825 - 362 - 334.77 = $86.98How do I view this deal?

Texas Job Growth AcceleratesCOLLEGE STATION (Real Estate Center) – The Texas economy accelerated job creation in July 2018, according to the Real Estate Center's latest Monthly Review of the Texas Economy.The state gained 377,100 nonagricultural jobs from July 2017 to July 2018, an annual growth rate of 3.1 percent, higher than the nation’s employment growth rate of 1.6 percent.The nongovernment sector added 372,700 jobs, an annual growth rate of 3.6 percent, also higher than the nation’s employment growth rate of 1.9 percent in the private sector.Texas’ seasonally adjusted unemployment rate in July 2018 was 4 percent, lower than the 4.1 percent rate in July 2017.