You may want to consider forming an LLC to shield yourself from potential liabilities. Unfortunately, people do get hurt on other people's property and hold the property owner accountable. There are some fees/filings associated with this (filing fee, annual report, etc) but it would be well worth it if anyone ever were to be injured on your property.
You can file your income taxes with schedule E(s) to include your rental income. You should talk to a tax advisor for the best plan for your needs and purposes.
You may also want to talk to an attorney about any special requirements. I know property managers must keep separate escrow accounts for deposits. I'm not sure what rules apply or are disregarded for owner managed properties.
Good luck! I will say you can probably do better on 4 single family properties than one 4plex in Clarksville if you buy right. We currently have a SFH rented in Clarksville that was about $30k. It gets $800 rent.... more
Clarksville rental market is constantly moving. I believe with who is coming here in June of this year, we will be very limited on rentals. Right now in the rental market, if you find a home that is managed by a rental company, qualification scores for credit must be 600 right now. That can always move up. It is the same to get in a home. I think with the deployments it will remain stable. Our market is a very strong market area. When you watch the Nashville news or world news, you cannot compare what they say about their city or our nation with Clarksville. We are ranked the 2nd in the Nation as a safe haven.
I hope this helped. For the record, I do not have a crystal ball, so I wouldn't be able to tell you what our market will be in 2010. Right now we are picking up pretty quickly. Just ask Amanda Dusenberry at 931.980.3999 with Anchor Mortgage when I called her in a 2 hour period time frame getting 6 couples pre-qualified on Valentine's Day!
Please let me know if I can help you in any way or if you would like more information about buying or selling in our market area. 931.206.2156 or email@example.com... more