@Vanessa A Thank you so much.
Basically, all the money contributed to the single member LLC should either show up as asset or expenses.
Help me to understand the following example.
1. Buy a rental property in cash, the income after expense is $1000
2. Buy a rental property with 20% downpayment and a loan, the income after expense (including mortgage interest) is $0
They both have the same depreciation from the property value and there is no concept of return of capital, does that mean (2) is indeed better because mortgage expense will offset the net income?
