Don't hang your hat on rental income. In other words, rental income has dropped by more than 1/3 since the late 90s. We're talking short term rental income, for vacation property in the mountains, Summit County. Renting a property short term will subject the home to additional wear and tear, certainly excludes the property as a primary residence for you but does achive a few goals. Like extra income, not pay the mortgage income but extra income that may set the stage for a positive tax situation.
Back to a conservative game plan. Rentals numbers have grown since their low point after 2001-2002. As extra income rental allow a a owner to grow a repair/upgrade account for the home. If a buyer pays cash then the income may cover additional operating expenses, like HOA dues, insurance and taxes.
As income waxes and wains over the years one understands that renting your home is another tax tool and may offer you income.
Just remember, it's no way to pay the mortgage!
Comments(0)