Two Family Investment
Looking to purchase my first investment property. I want to run this by some of the experts to see if this makes sense. I am looking to purchase a two family and want to purchase with cash for $45,000. The home is rented with long term tenants who want to remain. After expenses and just assuming each unit will be vacant for three months, I will net $600 per month.
Because of our tax bracket (35% total) , I do not want to hand this profit over to Uncle Sam and NYS. Since I can invest in a 403B plan a work, I plan to take the monthly profit and put it into the 403B plan; thus no extra income tax due. I do realize that I will have to pay taxes on it later but others are telling me I should take out a mortgage to deduct interest. This does not make sense to me.
Your thoughts?