Originally Posted By: KneeGrinder
It is definitely no cake walk. There is quite a learning curve. There are a lot of A**h***'S, drug addicts, alcoholics, liars, shysters, scammers, cigarette smokers, and people that just don't give a [censored] about you or your property. Did I leave anyone out? Unfortunately you have a difficult time trying to see into the future to protect yourself from the mayham of these people. On the other side of that, if you have a retirement fund that you have not paid taxes on, you get full depreciation of the purchase price over 27.5 years. So, you can actually take money out of a 401k without paying taxes on it! Its the only reason "Rich" people own rentals.
Yup, you left out people who rent the place and convert it into grow house or meth lab. That's why you have to add a "inspection every month" clause to the lease even if you don't plan to inspect, that'll scare away criminals who dress up as nice people to sign the lease.
That 27.5 years is only the building depreciation, you cannot deduct the land cost in depreciation.
It is definitely no cake walk. There is quite a learning curve. There are a lot of A**h***'S, drug addicts, alcoholics, liars, shysters, scammers, cigarette smokers, and people that just don't give a [censored] about you or your property. Did I leave anyone out? Unfortunately you have a difficult time trying to see into the future to protect yourself from the mayham of these people. On the other side of that, if you have a retirement fund that you have not paid taxes on, you get full depreciation of the purchase price over 27.5 years. So, you can actually take money out of a 401k without paying taxes on it! Its the only reason "Rich" people own rentals.
Yup, you left out people who rent the place and convert it into grow house or meth lab. That's why you have to add a "inspection every month" clause to the lease even if you don't plan to inspect, that'll scare away criminals who dress up as nice people to sign the lease.
That 27.5 years is only the building depreciation, you cannot deduct the land cost in depreciation.