Second house. rent or not to rent?

Trying to work out if it is really worth us renting a property.
what would our tax savings be if we only use it our selfs.
Assumptions.(I know its only an estimation)
mortgage interest 14,000 per
estate tax 3,000
income 130,000 filling joint
or rent
we our selfs would expect to receive 10,000 in rent.
that is after the agent took there fee 3500
on top of this we have bills and maintaining say 5000 per year.
plus the above estate tax ans mortgage interest.
Please help I can not get my head around it.
thanks Teri

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Submitted 346 days ago...

primetime001

Expert (962)

You need to consider a couple of things:

How much do you earn or lose every month on the rental. Is that amount acceptable?

How hot is the rental market where you live? If the rental became vacant for a few months could you still afford it?

Will the rental appreciate in value? If your spending $5,000 / yr. to maintain it, and it does not appreciate in value over the next few years, your losing money.

What happens if you have troubles with a renter. If someone can't pay their rent, or trashes the rental, are you prepared to handle that?

Please let me know if that answers your question!

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