- Is it better to pay off a second mortgage, or use that money for a downpayment on an investment property?
- when purchasing an investment property is it better to use an equity loan or a new mortgage loan?
- can a person take out a 2nd mortgage on their home to purchase an investment property?
- Should I take money out of my 401K to catch up a mortgage on an investment property?
Is it better to have a lot of write offs for an investment property with no mortgage or for one that does ?
30
Mar
ibu guru
March 30, 2010 at 3:07 pm
The more you can write off against income from an investment, such as income residential property, etc, the less taxable income you have. The less taxable income, of course, the lower the taxes due. Mortgage interest is a deduction. So are maintenance, repairs, snow plowing, landscaping, utilities (for parking lot lighting, for example). Once the mortgage is paid off, and the interest deduction is lost, its a good idea to have increased write-offs elsewhere or your taxes go up. But then, by the time the mortgage is paid off, you usually have gotten hit with higher property taxes, higher maintenance costs, and by that time, too, some repair/rehab/remodeling is needed. Also, most roofs are 20-year or 30-year roofs, so as mortgage interest deductions decline, you are definitely going to have repair/replacement items to deduct, especially the roof.