Mortgage on primary residence or investment property?

[Peter Rigakos]

Hello Everyone and happy new years.

Currently, I am looking for another rental.  I believe I found one that I would like to put an offer.  I know that it is much easier to get a primary mortgage as opposed to an investors mortgage as the rates, appraisals, fees...etc are cheaper in general.  My question is, if one was to pay cash for the rental, but keep a mortgage on their primary residence, what advantages are there when it comes to tax write offs.  I know that I can write off my mortgage interest in my primary residence, however, does it make more sense to write it off the income a landlord would make on investment properties?  Basically I am looking at the long run instead of the short term pain of getting an investors mortgage.  

Your help is great appreciated in advanced.

[Mike Sattem]

@Peter Rigakos,

This will depend upon how you hold the property. If you hold it in your name, or in an llc it will make no difference to you tax wise, as an LLC is just a pass through entity when it comes to taxes. However, if you have incorporated your rentals, you will need to speak with your CPA about your business tax liability. One thing to consider is that rates are much better on primary residences, thereby saving you money. Appraisal costs and loan fees will be the same regardless of what route you go.

[Steven Hamilton II]

@Peter Rigakos ,

You are better off with the loan on your rental as the interest rate against it will lower your income before anything threshold based is calculated.

[Peter Rigakos]

I wanted to say thanks for the help and information.  I had a feeling it was better to have a mortgage on the rental in the long run.  Once again the help is appreciated.