re: Rental property question

Long but consider the following

Not sure if all the specifics but for the rental
Rent minus cost ( insurance,mortgage,taxes, management?)

Throw in two months every other year as downtime to find a new tenant.

If using management they will take half a month fee to find a new tenant to.

Repairs —- usually not bad but be honest with expectations.

Figure that and do you have positive cash flow.

Now for the write offs: you write off all ( and I mean allllll) operating expenses so depending on your tax bracket you get that back 15-33 percent?

You can write off the occasional trip back to Houston to visit property and do some stuff. Be honest about it but it can subsidize an occasional visit.

Depreciation of the value of the house is the big write off. Value of house not land divided by 27 or something like that years. This income will not be counting on your yearly taxes and is good to (legally hide income if trying to keep income low like in retirement)

Consider you can write off repairs to improve it for selling..... but not replacements like change ac. You depreciate that.

You get value of unit appreciation.

Ok so now all figured out.... is this better than just getting 3.7 percent to 5.35 percent from investment grade corporate bonds???

FYI I have in my retirement portfolio: equities, bond ( Corp and fed) annuities ,cash and rentals for diversification