[motohagiography]

Do you pay income tax on the rental income as well? This would add about %30-45 to your mortgage payment breakeven as well, no?

If your mortgage payment is $1000/mo, you need that in after-tax dollars in addition to gap months and maintenance. This pushes rents up for single property landlords in the top marginal rate, or am I missing something.

[jnwatson]

You only pay income tax on your net profit (in the US at least).

[motohagiography]

Net expenses, but the equity in the property seems like income (as you can tell iana landlord).

Income taxes likely contribute a significant percentage of the difference between mortgage payments an rent prices. For a REIT, this is different, but for an individual owner renting out a second property and paying income taxes on the rent income, would this not create a significant difference?