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re: Could you help me understand taxes and my rental property?
Posted on 3/11/16 at 11:09 am to StringedInstruments
Posted on 3/11/16 at 11:09 am to StringedInstruments
I would agree that you need to look at selling this property. Only getting that amount of rent for a property valued at $170K and having to pay PMI, makes this a pretty crappy deal for you. Just imagine if you had a HVAC, plumbing issue, etc. that ended up costing you $3-4K. If you owe $161K and can get $170K today, I would try and get out from under that asap.
ETA: Just my opinion but if you have to pay PMI on a rental property, you should own it. Not to say that it is impossible or anything but that is too much money to be spending on something that is not necessary.
ETA: Just my opinion but if you have to pay PMI on a rental property, you should own it. Not to say that it is impossible or anything but that is too much money to be spending on something that is not necessary.
This post was edited on 3/11/16 at 11:13 am
1
Posted on 3/11/16 at 12:15 pm to stevengtiger
Property taxes in AL are ridiculous low. 200/month seems about right for an investment property with no homestead exemption.
I used turbotax too. The first year, you have to run through and set up the depreciation schedule. In subsequent years the depreciation should be automatically included AS LONG AS YOU KEEP USING TURBOTAX.
I'm in a very, very similar boat. Essentially zero cash flow, but don't let everyone tell you this is a terrible idea necessarily. It all depends on the specific area and your situation.
For me, I chose this route to let property values recover because I couldn't see paying 5-10K just to be able to move out of the house. 2 years later, property values boomed, and now we have 15K in equity. However, now is absolutely the right time for me to sell and pick up a better long term buy and hold investment property.
I used turbotax too. The first year, you have to run through and set up the depreciation schedule. In subsequent years the depreciation should be automatically included AS LONG AS YOU KEEP USING TURBOTAX.
I'm in a very, very similar boat. Essentially zero cash flow, but don't let everyone tell you this is a terrible idea necessarily. It all depends on the specific area and your situation.
For me, I chose this route to let property values recover because I couldn't see paying 5-10K just to be able to move out of the house. 2 years later, property values boomed, and now we have 15K in equity. However, now is absolutely the right time for me to sell and pick up a better long term buy and hold investment property.
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