Moving out closer to work. Renting an apartment. I am okay with the long-term investment.. basically the rent should cover almost all of the mortgage.. I will pay about $50 out of pocket every month + repairs/maintenance as mortgage. And yes I am fairly certain I am at or near the top end of the rent spectrum (property managers are analyzed comps and such)
My main concern isn't cash flow although maybe I'm missing something and maybe it should be. My main concern is a drastic change is tax owed. As i mentioned before, when i lived in the unit, I was not subject to any rental income but could deduct the interest and taxes.. as I move out, I can still deduct the interest and taxes and some additional expenses but now am on the hook for this rental income which far exceeds the "additional expenses" by my calculations.. now I have to pay taxes on this "paper income" because not only can I not expense the mortgage but this rent that I'm collecting is now considered income when in reality it isn't because it's going entirely to pay the mortgage. (I guess the real reality is that the rent IS actually income since someone else is paying my mortgage but for the purposes of my example I wasn't considering it to be)
