Hi am trying to figure out what our break even would be for renting out my house in California. All the options with taxes can be a bit confusing so i wanted to ask if have calculated it correctly here. I know there is more to renting out a house such as repair savings and such, but i am mostly interested in the break even.
For my mortgage I pay roughly
2400 in interest and
800 in principal per month and my property tax is
9000 a year.
If i understand correctly, i can deduct the interest in taxes, so i should get roughly 30% of that back coming tax time. I am not sure about the property tax, would have act like a credit or also a deduction?
If it is a deduction need would need:
2400*12*0.7+9000*0.7=26460 a year, which means rent should be
2205 for the rental house to break even. Is this correct?
I would need
(2400+800)*12+9000=47400 a year to have positive cash-flow,
3950 a month.