There is so much more to know about owning rental property beyond just the numbers. When calculating the numbers, you must allow for tremendous additional unknown expenses when you calculate whether the property will operate with a positive cash flow. Beyond the obvious, tax increases, insurance increases, unpaid rent, unforeseen repairs, etc., there are also tax and filing related expenses that need to be considered.
It is strongly recommended to clients that they own their rental income-producing properties in the name of a limited liability company. As the name implies, this will protect your personal assets from any potential creditors relating to issues arising from your ownership of the rental income property However there are negative aspects to owning in the name of an LLC such as filing fees, additional accounting expenses and tax implications upon the sale of the property that you would not have if you own the property in your personal name.
It is often recommended to clients who own only 1 rental income-producing property that they can do so in their own personal name and merely increase the liability insurance on the property tremendously, When a client starts to accumulate additional properties it is then highly recommended that the property owner put the same into the names of limited liability companies.
I have been doing this type of work for 35 years as an attorney representing buyers, sellers, landlords, tenants and I have been a principal in a real estate investment company which did this type of work for many many years. Give me a call for all of your concerns and questions.