., new kitchen, HVAC) to raise your cost basis.Understand that repairs and cosmetic updates don’t count toward increasing the basis.Letting your uncle sell and then gifting the proceeds is the cleanest and most tax-efficient strategy.

So rather than add another “sounds good, has anyone done it” strategy, I’ll merely lay out an actual transaction I completed (a number of years ago), which combined RE and Business for greater profit.I purchased an auto repair facility at bankruptcy sale for $115,000.

The questions you listed are exactly what newer investors often overlook, especially when they focus too much on the numbers and not enough on day-to-day management.I’d add one more: ask how they handle local vendor relationships, especially for maintenance and emergency repairs.

The lease also clearly states that my duty as a landlord to repair (Section 13(A)) does not include tenant-caused cleanliness issues.My efforts to resolve the situation have included:Responding immediately to his initial complaint.Providing a new shower curtain (not a landlord responsibility).Offering a cleaning schedule (which the tenant opted not to follow).Most significantly, securing the departure of the other roommate, Flynn Culver (who vacates June 14, 2025), to eliminate the alleged source of the conflict.Crucially, I have text messages where the tenant himself stated that the bathroom situation was "good" and that the roommates were communicating to fix the issues themselves, directly contradicting his current claims of persistent, unaddressed problems.The tenant has now threatened legal action to force early termination and seek rent reimbursement.

You should also account for emergency repairs or slow rental months, especially during off-seasons or hurricane threats.Santa Rosa Beach and Rosemary Beach are beautiful but expensive markets.

I will note we've had insurance payouts that end up being more than the cost of the repairs when all is said and done, so that is not unusual. 

Hey Carissa, it can be super frustrating to run deal after deal and keep seeing negative cash flow.Your assumptions — 5% repair, 5% vacancy, 5% capex, 10% management — are totally fine.

I know someone else who wanted to do "creative financing" and did 100% seller financing about 18 months ago and paid 10% more than house was worth - they are now about 30% underwater on the property and cannot afford to pay for repairs. 

., roof, HVAC, not repairs)Certain acquisition costsLess any depreciation you claimed (or were eligible to claim) if the property was rentedIf the property was a rental, even without gain, you may still owe depreciation recapture tax, which is taxed at 25% on the total depreciation taken.3.

., WITHOUT ANY OTHER MAINTENANCE/REPAIRS/VACANCY, I get about $283/month cash flow (that's on a 30-year fixed, 6.50% rate, 25% down).