Your first opportunity to dabble in Real Estate might be by renting out your finished basement, accessory apartment, etc. It is an excellent opportunity to get the feel to see if you’re suited to be a landlord. It can also help you with mortgage payments. You need to make sure to track your expenses as this can save you on your income taxes. You might even be able to offset some losses against your wages; however, this is not so simple. I will explain this in detail in a future post. Common expenses applicable to your accessory rental include direct expenses and indirect expenses. An example of a direct expense is advertising the rental. Examples of indirect expenses include; condo fees, insurance, lawn care, pest control, mortgage interest, real estate taxes, utilities, etc. The indirect expenses are typically paid from your personal bank account. You will need to allocate the rental portion to the rental unit. Let’s use an example. Your mortgage interest is $3,000 per month. Your house is 2,800 Square feet, and the accessory apartment is 1,200 SF. In this case, your $900 interest will be deducted on the rental unit (1,200 SF / 4,000 Total SF = 30%). Your tax software should be able to help you with this