Rental property is a great idea and can generate a decent income stream.  I have seen it done with many clients.

I have also seen some seen some lose money, by having the rents too cheap to cover the costs of the property. They fear that no one will pay them true market rates for rent.

Real Estate can generate a real cash flow and a tax loss, the depreciation expense is the usual cause for this phenomenon.  A word of caution, those tax losses created from depreciation can come back when the property is sold, and the depreciation needs to be recaptured.

I recommend that you don’t own the property in your name, it should be in an LLC, this can makes transfer easier.

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