., residential service calls for repairs), those activities do not count toward REPS.Key DistinctionActive Plumbing Work: Directly performing plumbing tasks for remodels, new construction, or commercial projects unequivocally qualifies as a real property trade or business under the construction/reconstruction category.Operating the Company: Your role as an owner qualifies only when your activities are directly connected to real property projects.

Rehab expenses that add value or extend the life of the property get capitalized and depreciated, while true repairs can be deducted right away.

Many investors prefer to keep at least three to six months of expenses in reserve to cover unexpected costs such as repairs, vacancies, or market downturns.

But with interest rates being what they are now, I’m wondering if that 8-12 % CoC target is still realistic (after underwriting vacancy, repairs, CapEx, etc.)Thanks in advance for sharing your experience.

I refined the prompt to something more like this: I want you to pull comps for this property.

You really need to decide ASAP if you want to rent or sell as it will impact the level of repairs.

If you are only taking out little repair or renovation costs a Heloc might be fine.

., time spent on guest communications, cleaning coordination, repairs, marketing, etc.).Proper documentation not only supports your position in the event of an audit, but it’s also essential for meeting the IRS thresholds for material participation under the STR exception.happy to help.

Mark’s reply is very good (I upvoted it) but a couple items I have a different perspective.My lease and hopefully your lease places all repairs that is not usual wear and tear on the tenant.  

(vacancy, surprise repairs, insurance deductible if you make a claim, etc.)