We’ll be self-managing our first couple of properties to stay hands-on and maximize cash flow while we get established. 

@Laurie Geissler Yes, you’re correct, capital improvements such as converting the garage into a 1/1 unit can be added to your cost basis, which helps reduce the taxable long-term capital gain when you sell the property.

How did you finance this deal?

I understand how the income generated from my property is taxed as I own and manage this property. 

I think a lot of this is market and property specific.

How do I get into this market to rent my furnished properties?

A cost segregation study was performed on a short-term rental property in Kissimmee, Florida, with a depreciable basis of $176,000.

Or if a tenant damages a property and doesn't want to pay or a maintenance job goes sideways, these can all be huge headaches. 

This will also allow you to get the best possible financing and lower down payment options.If you are able to do some work to fix up the property that would allow you to grow the equity. 

You must learn to manage the property well.