“Don, come to the window and look at the new neighbors who are moving in! I hand-picked them, the guy has boxes and boxes marked “tilde collection” and he put up a sign that says, ‘Sandwich Deliveries Accepted 24 Hours Daily’!
Don expediently replies, "Why, being a voyeur and a spy, I concur!" He has recently moved the boxes marked, "binoculars and TV Trays," over to the windows where he could see the tidles marching your way. The tidles seemed happy with bells that jingle and boobies that wooble. Amazed at the decadence you built with your tidles, Don scratched his head. "Merlin, have you flown over Randy and his tidle army recently?"
I replied in the most distinguished sense, "I have gladly flown that way and this is what I have seen today." Shaking a little bird poop off my cuff, pouring a strong drink, I continue with my one-year-4-Earthday-older wisdom, "The tildes are happy and he has invited sandwiches to come, 24-hours, onto his mouth-watering decidance." Since I am saying this, spelling does not count, Sir Randy. ;)) We decided, being good neighbors that we are, to invite you and tildes over. We happen to excel in sandwich making and thought there to be a bonified bonus of cultures and properties mixing. Our gallant steads who always arise to our every need, wisp us aboard their strong and fluid muscles and prance your way, with pride. Always having manner and Never arriving at a home without a gift, Don unmounts his breathtaking stead and offers you and your wife a beautiful array of wines, seeds, and fruit for every need. You are grateful and amazed at our bountiful giving, offering us your house and our steads for graze freely. We go onto explan, "24-hour taste-bud arousal from sandwiches is a business we can be partners with. Rain. Shine. Sleet. Slow. All sandwiches will definetly Glow. Sandwiches will come.. They will be dressed with delectable spreads of all spices and that will make you inards vibrate. Tastes and desires that words themselves, cannot communicate are definitely a giving business we would love to help you in starting and exceeding." We come to help you Randy, and your tildes. Sandwiches were meant to be shared throughout all the Earth miles. You think for a moment and say...
I would use one to live in and the other a vacation home for my son and his wife. When they weren't using it, we would use it as a place for friends who come to visit. We like our time and when it's time for "our time", they can GO HOME.
Here's my answer as a tax guy, and it's not as difficult to accomplish as you might think: Live in one and create a multi-partner LLC to own and operate the other as a rental property - or live in an apartment and rent out both houses. Not only rental income, but big tax advantages by filing a Form 1065 partnership return. I might also take out a mortgage at a favorable interest rate on one or both, especially the rental, as the interest can be claimed as a business expense on the 1065 along with depreciation, property taxes, repairs, utility bills et al to create a nice operating loss which, because it's a partnership, is not subject to the $25,000 passive activity loss limitation for personal returns. Each LLC partner gets a piece of the loss passed through to his/her personal return, resulting in lower income and lesser personal income tax due.
Now that we have the tax advantage from deducting the mortgage interest, we take the mortgage proceeds and invest them, either in the securities markets or in a down payment on another rental property. A lot of potential wealth creation by this method.
I love you. I wish you were someone in my reach when I could have used your expertise. Maybe next year. We need to exchange, somehow, a way to have you do our taxes. I'm willing to pay for expertise. Just please, don't take advantage of my trust. I think you ARE our man.
Merlin 