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Texas doesn't have income taxes, so for Texas all you have to pay is property tax, LLC fees, and Federal taxes. Anything else?
It's not so simple as asking how much will this cost me, is $1000/mo your profit (net?) or revenue? Do you have other income from other business or wages? Let's assume $1000/mo is your profits, so basically your income from rentals is $12,000/year. You have to pay Federal taxes on that $12,000. I recommend you get a CPA or if you have any knowledge and a lot of patience do your taxes on hrblock or some other website. Most are pretty easy and will help guide you through it step by step.
You're not giving us enough info to reply to your question.
How much do the apartments cost? When are you going to buy them? What are property taxes in that county? How much do you need to spend to get them ready to rent? What other income do you have? Do you have handyman skills or will you always need to hire people? How many months out of the year will the apartments be rented? What if the renters don't pay? What does an HOA have to do with it? How much will the insurance cost?
Apartments are in Dallas, each costing about 35K-45K.
I haven't made up my mind yet on exact properties.
They may need some flooring and other things but do they even matter??
I am rather interested in what happens next.
A guide is welcomed
Definitely need to consult with a CPA.
Your only taxes, like mentioned should be federal and property tax since you do not pay income tax (lucky you!). We are in ohio and have 6 rental properties. All bought with cash and were $10-13k each. Just make sure you know what your bottom line will be after expected expenses each month. There can be many expenses that pop up. Will you have to pay for any utilities? How much will insurance cost per month? If theyre older homes, like we bought, expect things to need repaired and maintenanced more often.
Best thing is to consult a CPA to make sure you take advantage of every tax saving opportunity out there when you have them, and even before so you can be sure its a good deal. Just because theyre cheap doesnt mean theyre a good deal.
Go online to the IRS website and open up the tax tables for 2015. Look up the amount of profit you expect and the table will tell you what the income tax will be.
Then you need to go to your state income tax website and do the same for your state income taxes.
llc's just pass the profits over to you personally . there is no tax advantage at all .
loans are very very very difficult to get and most banks will not loan under an llc name . you have to take the loans personally .
The loan is typically structured with the LLC as the borrower and the principles will sign an unlimited full personal guaranty.
To the OP- you can find a lot of of rental worksheets on the web, I'd suggest adopting a model to tinker with. As previously stated the net income will pass through to the personal return via a schedule K-1 (passive income).
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