The big hurdles that are preventing this from really making an impact are:1) Barrier to entry cost - This is all the permit fees, environmental studies, professional costs, etc.

By planning ahead, you can reduce your overall tax liability and create more flexibility for future investments.Just as important is protecting what you’re building.

I personally work with them as a client & can agree that the different activities can be separated in order to prevent additional liability to reduce risk. 

This will prevent them changing their mind later, and may reduce the ownership timeframe to file AP.3) Consider recording the QC deed (atty advice on this) and then pay the back taxes and put my mailing info for future bills.Once you've done the above I'd rent the home, pay taxes etc for the next how ever many years and then file you AP claim when the time is right.

But if they screw up it is the manager's responsibility to prevent it from happening again.

From my research so far, WA state law prevents cities from setting occupancy limits on single family homes.

I think KCMO is considered a landlord-friendly location.A professional property manager can significantly improve an investor's life by streamlining operations, maximizing profitability, and reducing stress.

Now I'm wondering if this quitclaimed deed can prevent either one of those from happening.

Passive losses can only offset passive income—they don’t reduce your W-2 income in most cases.So while your duplex rental may generate losses on paper, they won’t reduce the amount of tax withheld from your W-2 unless:You qualify as a real estate professional, orYou materially participate in a short-term rental under 7-day average stays, orYou have other passive income to offset.What to do instead:Don’t stop your W-2 withholding entirely unless you’ve worked with a CPA to confirm a significantly reduced tax liability.If your rental qualifies under STR or REPS, then yes—depreciation and losses can offset W-2 income, and you might reduce withholding.Otherwise, you can still update your W-4 to fine-tune your withholdings slightly if you tend to overpay and get large refunds, but be conservative.Run a midyear tax projection with a real estate CPA who understands REPS, STR, and passive loss rules.

How do you reduce costs for cleanup?