I need some help understanding the tax implications of real estate investing.

I'm thinking of buying a house and renting it out:
The mortgage, hoa fees, escrow, etc would be around $2200/mo
I could rent it for $1800/mo (have a renter lined up)

That leaves a $400 gap per month.

Would I make that up in tax savings? If someone could explain the tax benefits and perhaps point me to a site with a few examples that would be very helpful!

Thanks
Jack

My suggestion is to contact your tax professional.

There is no one better qualified to offer this information then your personal professional adviser.

If you don't have one in your area that works with real estate issues, you might have your current accountant recommend one for you.

There can be lots of tax benefits to owning incoming producing property, depending on your personal situation and locality.

A $4800 a year gap is quite large to be made up in taxes

Maybe consider ways to reduce that gap.

Good luck.

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Jessie: Panama City Beach Real Estate, Panama City Real Estate and Panama City Beach Condos

The best site that has a cash flow calculator and does the tax implications is www.recalc.net. It is simple and fast for calculating cash flow (before and after tax), rate of return, cap rate etc. It is free and can be added to a real estate web site for those who sell investment property.