A depreciation schedule is a great tool for property investors as it is considered a “non-cash deduction”. Unlike other property expenses that you need to pay out of your own pocket first, a depreciation schedule is paid for once, but it can be reused year after year to claim back legitimate tax deductions.

According to RPData 72 per cent of investors own only one property, while 18.9 per cent own at least two. That leaves about 0.9 per cent of investors with six or more investment properties. Though there are many reasons why the majority of investors own no more than two properties, the sad fact is that you will never become financially independent by owning just two properties.

If you're thinking about buying your second investment property, it's a good idea to understand how to leverage equity in your existing home to purchase another property (or two).