Utilizing CREATIVE strategies can ENHANCE your wealth building, IF you know what the heck you’re doing, but creating an investment program around creative strategies rather than using creative strategies when and if appropriate will at least quadruple the time it takes to build a portfolio, if you’re able to generate enough deal flow at all. 

We have deferred upgrades, and could maybe reduce lawn care, but everything else is fixed, including some utilities included in rent. 

Utilities, permits (along with the time they require which adds to carrying costs), interest payments, etc. can tip a deal that initially looks good to a cash drain so factor them in and be sure to put in a 10% reserve for the unexpected costs which you know will come up. 

Key areas to focus on include correctly establishing placed-in-service dates and depreciation, properly classifying startup versus operating expenses for the newer property, cleaning up mixed personal and rental bank activity to avoid future issues, and understanding how passive loss rules interact with your W-2 income.

You can bill the tenant back for anything you need like a utility, damage, etc or waive a fee and it is documented in a central location forever!

Although I'm aware how difficult BRRR can be, would that be a better route to take to utilize more leverage? 

The timeshare management side has always been time-intensive, but it is now largely outsourced, with our AI agents utilized through ChatGPT.

If I am reading your numbers correctly you are saying that you are cash flowing $876 annually for a $53,000 investment plus your time, risks and unknown expenses e.g. loss due to vacancy, cleaning after a tenant destroys the property, painting, carpets, utilities when it is vacant, new water heater, furnace, air conditioner, leak in the roof, broken or leaking drain pipe, sewer, water pipe, gas leak, or replace or repair leaking faucets, broken screens, repairing locks, trash removal, city sewer use fees and a lot more. 

Your hard monthly expenses would be over $2k per month not including any utilities you may need to include.

I also strongly suggest working with a tax advisor to first get a plan in place and ensure you can fully utilize the accelerated depreciation and that it makes sense for your situation.