Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
First Investment Property in Memphis TN
Hi All,
I am considering to buy my first investment property in Memphis, TN. I am totally new bee and my friend suggested me a Property Management Company. They take care from buying a foreclosure, renovating till renting out for me. This sounds really awesome and only thing looks like I am left is with downpayment but to me its too good to be truth. I have couple of doubts
1) Is Memphis still a good area for a cashflow?
2) I am in California, if I am getting 300 cashflow, what are the TAX implications ?
3) I do understand that there is a possibility of having a bad renter but what the probability of getting them more often?
4) I also understand that the property will be need repairs or minor repairs every time renter moves out but can I claim those in the TAX ? What are the chances that it would exceed my total cashflow? Lets say if my Cashflow is 300 per month so yearly $3600 but if a bad renter would cost me $4000 then I see no point in such investment. Am I getting to worried?
5) I also heard that If I do such kind of investments, then I should create a trust and put my investment property under it. I am not sure how its is going to help me and do I really need it ?