This explains the misguided  lure and appeal  of the "1% percent rule".

However, based on your situation, I’d recommend pushing back a bit and explaining the specifics of your arrangement.Most third-party property managers are listed as the main host on Airbnb or VRBO and will input their own banking and tax information so that all payments flow through them on behalf of the property owner.Typically, the management company collects the gross rental income, deducts its management fee and any expenses paid on the owner’s behalf, and then remits the remaining funds to the property owner.In this setup:You would issue a 1099-MISC to the owner for the full gross amount collected, not just the net amount remitted.Separately, you should provide the owner with a monthly or annual summary of all expenses paid on their behalf (including your management fee).This allows the owner to deduct those expenses against the 1099 income, effectively reporting only the net rental income they actually received from you.The owner would then deduct any other property-related expenses they paid directly (e.g., mortgage interest, property taxes, insurance).From your perspective:You would only recognize income for your management fee and any expenses you paid directly that weren’t reimbursed from rental proceeds.You do not need to pick up the full gross rental income you collected on behalf of the owner.Likewise, you shouldn’t deduct expenses that were paid using funds that were ultimately remitted to the owner.DM me if you have more questions!

But when the contract goes on a month to month or renewal, explain that your raising rent.

Can you please explain why 5% is better than 3.5%FHA?

I explain the consequences of an eviction to the tenant.

If renewed, it could (once again) unlock major tax advantages for W-2 earners investing in STRs.There are several articles that do an exceptional job of explaining who, what, where, why and how tax payers qualify for the STR Tax Loophole - one I often share with client and in our STR newsletter was written by Joe Chiappias with Taxclimate.com.📝 The Short Term Rental Tax Loop Hole: A Game Changer for W-2 Wage Earners"What’s the Big Deal?

In this post, I will explain a process and provide the necessary information sources.Selecting the right investment city is crucial for achieving financial independence.

I also have some capital to contribute.Could someone explain how syndications are typically structured, and how are people using Other People's Money (OPM) to build large portfolios with little to no money down?

And I still want to do the Money Podcast eventually and try to explain the connections between radical political instability and personal financial independence, from the perspective of having a family caught in the Greek debt crisis.

What I was trying to explain in my previous reply is that the property I was under contract for would be deemed an ADU as it legally is in compliance, but if I were to request permits to operate as a STR in the unit, that would not be allowed.