Real estate can definitely be a lot of work, but it’s usually worth it because of the long-term cash flow, tax benefits, and potential appreciation, especially when your management setup actually protects your bottom line.From a tax perspective, if you go the self-management route, you can write off repairs, maintenance, and handyman costs, which helps offset rental income.

They may even spend a couple of hours with you on a Saturday (but NOT Sunday) to tour a few properties - preferrably one or two undergoing a decent amount of RentReady repairs or rehab.Make it clear to anyone you hire that you expect VIDEO updates of rehab progress!

Everyone talks about finding deals, networking, and learning how to analyze properties — and yes, those matter.But the most underrated skill I’ve seen in successful investors is simple:Paying attention to the details after closing.That means:Tracking every expense from day one.Separating business and personal accounts.Understanding what counts as a repair vs. an improvement.Keeping organized records so your CPA doesn’t have to guess.It’s not glamorous, but those details are what protect your profits.I’ve seen investors crush their first few deals… only to get hit with avoidable tax bills or missed deductions later because they didn’t have a system.You don’t need to know everything at once — just treat your portfolio like a real business early on.Deals make you money.Good systems let you keep it.

Over the years, I’ve noticed something interesting working with investors:The biggest tax mistakes usually don’t come from shady strategies or bad CPAs…They come from poor recordkeeping and timing.Here’s what I mean A lot of investors don’t track which expenses are repairs (deduct now) and which are improvements (depreciate later).They toss all the receipts into a box or an app and hope it sorts itself out in March.Then when tax season hits, they realize half of those costs could’ve been handled differently — maybe deducted sooner or even structured better if they’d planned a few months ahead.The IRS doesn’t just care what you spent… it cares how you report it.

Activities That Count Towards Hours Time spent on the following activities generally counts toward material participation hours: • Collecting rent • Advertising and marketing the property • Screening tenants and guests • Negotiating lease/rental agreements • Performing or supervising repairs and maintenance • Bookkeeping and legal compliance • Guest check-ins/check-outs and communication [18]  Importance of Documentation The IRS heavily scrutinizes material participation, so it is vital to keep meticulous, contemporaneous logs of your time and activities. 

As the tenant moved in the first week like 5 things pop up ( leaks/ Water heater not working and several other small things) the total was 800$ i found a local guy to repair them but his labor plus trip charges and parts are racking up, and hes cutting us a deal because his per trip charge is $125 Range.

Save it for the inevitable repairs or a down payment on your next property. 4. 

If you set it too low, a surprise repair or slower refinance can wipe out gains.

This home had clear value from the start, requiring no repairs and sitting in a desirable area with active buyers.

Way easier than trying to fix problems down the road.Your OA should cover things like:-How your partner’s initial capital gets returned -How profits are split after that-Who makes the big decisions (budgets, refinancing, when to sell, major repairs, etc.)There are lots of ways to set it up so both of you feel protected.