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Originally Posted by mivdo
Forgive me for piggybacking on this thread. I am currently looking to upgrade as well but seeing as we bought our duplex right before the recession, the current value is well below what we bought it for. We have thought about buying now and renting out or duplex for the foreseeable future, but I would like to know what exactly I am walking into before we pull the trigger.
What exactly are the tax implications, do I find renters myself or go with a property manager etc.
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Generally speaking if you can afford the risk, the longer you can rent it out the more it makes sense.
Tax stuff is pretty straight forward - accountants can probably help you out but I just do mine myself. You can claim mortgage income, condo fees, basic non capital stuff. The big one you can't claim is anything principal for obvious reasons, and that's going to push you towards taxable income.
I find my own tenants on Rent Faster for my condo, but might move over to a property manager eventually.. My tenants almost never bug me, but when they do call it's always at the worst possible time (on vacation, dealing with a car issue, etc)
