Smart Things to Consider:

2nd home:
You can deduct all of the interest paid on your mortgage!
(Mortgage Interest X Tax Bracket (30%) X 4 years = $12,189 in Savings!

Investment Property:
Take advantage of a 27.5 depreciation benefit less the cost of land!
(Sales Price ($199,950) - Land Value ($15,000) / 27.5 x 4 Years X 30%
= $7,900 in Savings!

Management Fee:
Pay your student to "manage" the property and deduct the fee from your taxes!
($200 fee X 12 months) X 4 years X 30% = $2,880 in Savings!

Travel Expenses:
As an owner, you can reasonably deduct travel and meal expenses!
($200 fee X 12 months) X 4 Years X 30% = $2,880 in Savings!

Appreciation:
Based on historical Harrisonburg Real Estate Data, owners can project 4% per year in property appreciation, generating an estimated additional $33,961 in Profit!

These figures are not guaranteed, but are believed reliable at the time of this printing. Please consult an accountant or financial advisor for all possible tax benefits for which you may qualify and to determine if you qualify for the 1st time homebuyer tax credit.