super newbie here so bear with me.. goin to buy house for investment... want to rent out.. say i rent for 1500 and paymenst and monthly blah is 1000 what has to been done with teh 500 cash flow.. how do i get out of paying taxes on this what has to be done.. or is that 500 hunderd straight in pocket

no one has any advice?....

I personally would never buy a single family home to rent out. But if that's what you want to do, go for it. Out of your $500 you will have to pay taxes, insurance, and maintenance. No, there's no way to get out of paying taxes.

As far as tax breaks go, you get to write off your purchase price (depreciation) over a 27 yr period (I think). That's straight line depreciation, no acceleration. And you can write off the insurance and maintenance expenses, plus mileage to visit the property, long distance calls to the tenant (if that applies), office expenses incurred because of it, legal expenses because of it, etc.

You need an attorney for asset protection and an real estate tax accountant for planning.

Repairs, taking tenants to small claims court when you need to evict them, occasionally making a mortgage payment when the house isn't rented . . . That will eat up some of your profit.

Nothing wrong with investing in single family rental properties; it's just easier to make things work when you have at least 6 or 8. That way, if you have one that sets empty for a month or two, or one you have to remodel because the tenants trashed it on their way out the door, it's much easier to keep paying the bills. (Speaking from experience: 8 single family houses, 2 triplexes, 1 duplex.)

Singles for rentals can work IF you are close by to provide some level of supervision of what's happening on the property.

Multi-Units provide an Economy of Scale PLUS an automatic form of free supervision performed by the Tenants. They do pay attention to what is happening near them, and will usually speak up when things are developing which are out of the ordinary. Two Families don't provide the coverage that the Multi-Units allow, and those Tenants are usually intimidated into keeping their motuths shut too long.

Almost every time I have had an experience with a Methamphetamine Lab, an Illegal Kennel, or a Prostitution Business, it has been in a Single.

Multi-Units provide the Tenants with a level of Anonymity that encourages them to report unusual goings on. I did have a Duplex for Sale once (No Pets Allowed) where one side was occupied by a Drug Dealer and the other by people raising Pit Bulls. Neither party would squeal on the other.

Writing this reminds me of a single that had many of the above activities. It was also the home of the "Never Ending Garage Sale" where they always had an abundance of stolen Outboard Motors, Lawn Mowers, Canoes, Bicycles, Lawn Furniture, and all kinds of smaller less expensive stuff that they had stolen elsewhere.

Well, regardless of how many units, it's good to make sure you are close by and don't become an Absentee Landlord. Rentals aren't always just a Bowl of Cherries or Peaches and Cream.

And try to avoid the Lead Paint Issues by buying something constructed AFTER 1978.

Just some random thoughts about the joys of being a LandLord; which I am not anymore; but I continue to watch others enjoy this activity (from a distance).