Tax question on rental properties

[Ben M.]

Since we are taxed on our income from rental properties, how does one usually prepare for this? Let's say if the tenant is paying $1200/month how much of that would be taxed and how does one budget for that? Do other tax advantages make up for it?

[John Acheson]

Ben, you can write off a lot but remember that the lower your NET income on your taxes, the lower your DTI for any future deals within a few years will be. Are you planning to finance another deal in the next couple years?