New Rental - or sell it? New potential landlord here looking for input.

[UnleashHell]

Potential Rental Property

Cost: 140,000
Current Value: 165,000
Current Mortgage left: 129,000

Monthly Outgoings:
Mortgage- 650
Tax – 280
Insurance – 50
HOA- 193

Total: 1,173

HOA is for a maintenance free home (ha!) and includes all landscaping, waste removal, roof repairs and replacement and painting.

Rental income range: 1,600 to 1,700 pcm

OK- I’m a novice here. Assuming I’m using a rental agent that’ll cost me what – 10%
So my gross figures are 1,600- 160 – 1173 = a monthly cash flow of 267 for all interior repairs and to cover vacancies.


So why use a rental agent as I’ve only got interior repairs and finding a tenant to take care of?
Do I run it or set up a LLC?
Can I claim depreciation? For me or just as an LLC?
Without an agent it could cash flow 5K. that’s not much different to the amount my new mortgage will be… (then theres insurance etc..)


What else am I missing?

Thanks!

[YttriumNitrate]

Let's see if I can answer some of the easy questions:

--Yes, you can claim depreciation. Doesn't matter if the property is in your name or an LLC.

--Note that land doesn't get depreciated, so you can only do the structure.

--You could move the property into an LLC, but that potentially triggers the due on sale clause in your mortgage and the $140/yr in Florida fees would possibly be better spent on just buying more insurance.

--Your insurance amount may change as protection for items in the house will go down (renter's should have their own insurance) while your liability protection goes up.

[UnleashHell]

thanks @YttriumNitrate

anyone else care to contribute? or point me in the right direction?