Which one should I take advantage of taxes and value of money?
If you have enough deductions to meet or exceed the standard deduction without the mortgage interest then there's no difference. If you need mortgage interest to justify itemizing or wouldn't itemize even with mortgage interest, then most likely the mortgaged property should become the rental.
Expenses directly offset rental income so you don't have to think about tax implications for break-even on those. Principal payments are not deductible rental expenses, so you'd consider tax burden for those.
Deductible rental expenses:
Interest - $2,400
Property Tax - 750
Insurance - ?
Repairs/Maintenance - ?
HOA - ?
Utilities - ?
Depreciation - ? (Price ...
Landlords can often also claim depreciation to further reduce taxes. As a result, in some cases, it may be possible for a property to have a loss for tax purposes but generate positive cashflow.
However, if the landlord's income is too high, it may not be possible to deduct a rental income loss.
The above is not tax advice, it is for general ...