12/07/2025
🧾 From Negative to +$29,438 Profit: How to Calculate Correctly
My client was about to walk away from the deal:
💰 Purchase price: $785,000
🏠 Rental income: $80,000/year
📉 Expenses (taxes, HOA, insurance, cleaning, etc.): $62,036
🏦 Mortgage: $3,564/month → $42,768/year
🔻 Bottom line: minus $15,205 cash per year
This is the point where many people turn around and walk away.
But we dug deeper.
📌 What’s really going on?
📊 Tax savings:
— Depreciation: $28,545
— Operating loss: $15,205
— Mortgage interest: $40,192
💵 Total write-offs: $83,942
🧾 At a 32% tax rate → $26,861 tax refund
🧱 Equity growth:
Of the $42,768 in mortgage payments →
$2,577 went toward principal
This is your ownership share — your asset
📈 Final turnaround:
–$15,205 ➡️ +$26,861 (tax) + $2,577 (equity)
💡 Net benefit: $29,438.44
👀 Looks like a loss? But in reality — it’s an investment with returns.
📩 Message me if you want to learn how to see the full picture.
Disclaimer: This reel isn’t tax or legal advice — I’m simply teaching you what questions to ask your CPA and attorney.
