Analyzing a deal and factoring in taxes

2 Replies

Hi all, 

I am pretty new to this so this might be a silly question... When analysing a deal and trying to come up with an accurate cash on cash return for a buy and hold multi unit, how do you account for the expenses you eventually get back? Meaning, and I might be wrong here, but for example property management or repairs are a business expense and are tax deductable correct? So how do you factor that "refund" in when looking at a potential deal or looking back say at the past year to see how well the property you own performed? 


Thank you in advance!

@Michael Sarkissian hi Michael- Simple answer, you don’t. What you’re talking about here is a write off to offset your rental income. However, you won’t need this write off for many years because you’ll have the cost of the actual property to offset your earned rental income. Make sense??