.• Track hours if you or your spouse aim for Real Estate Professional Status (REPS) or use the STR loophole on future deals—depreciation losses can then offset W-2 or active income.Bottom line: keep the rentals in LLCs for liability protection, maintain them as pass-through for tax simplicity, and separate management income if needed for tax savings. 

We inherited a long-term tenant (10+ years) who is very kind and well-liked, but she does not maintain the unit or herself very well.

As a landlord, I take pride in having great tenants and well-maintained properties in strong locations.

If you're particularly sensitive to it, I don't see any point in making yourself miserable over it.The other thing about smokers is that apart from a very rare few that are somehow able to maintain a habit of only a couple a day without it gradually becoming more, most of us are addicted to it to varying degrees.

I am specifically talking about when the syndication sells and does the 1031 itself and maintains the LP or LLC of the exchanged and exchange.

People in foreclosure don't maintain their house and there is a lot of deferred maintenance.5.

Because the Property Class dictates the Class of the tenant pool that the property will attract.The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.The Property Class will also impact the maintenance & renovations you do to,, “Maintain to the Neighborhood”.Why is that important?

Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.

Seller is behind payments in the amount of ~$10K.Seller wants to walk and maintain his credit with a little something extra. 

We consistently maintained 85% or higher occupancy.