I may be a landlord soon and don't know how that will affect me.
I am moving out of my condo and will probably be renting it out.
The mortgage and condo dues are about $1310 a month.
I can get a one year rental at $1500 a month. This is a below market "family rate". The condo could rent for 16-1700, but at that point I would hire a property manager to deal with the people and that would eat up most of the increased income.
If I take this rental scenario I will have to declare the rental income and am worried I will owe more in taxes than the $190 difference in rental income.
I always took the standard deduction for my taxes as I do not have enough deductions to make itemizing worth it. How would paying for two mortgages (new house, and rental condo) change that? Will I be able to keep the standard deduction and only pay taxes on the $190 difference?
If I have to itemize, I'm estimating the new mortgage will have $about $7500/year in deductible interest. How much of the rental mortgage/dues will be deductible?
The first preference would be to sell the condo. We bought at $130k, owe about $97k and could sell from 120-140k. The rental offer came up as a near guarantee and I can at least break even for a year or two on it before selling at a higher price, or getting a higher rental fee.
