I’m actively involved in their Agent communities so that I’m not a drag on their resources.

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

There are strategies to get around this/reduce SE tax, but all involve proactive planning. 

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

I recently had a Title agent mention the upcoming FinCen Residential Real Estate (RRE) requirements starting March 1, 2026 and asked if I was a "lender with a regulated AML program."   

A diagnosis done properly involves time and gaining the proper access in the furnace to check and verify.

To use STR losses against active income, you generally need to materially participate, which means being involved in the operation of the property on a regular, continuous, and substantial basis.

Also, why was a PMC involved if you self-manage?

One side of the duplex is occupied, so that would involve opening holes in walls and disturbing that tenant.I put in my seller's disclosure that it's unpermitted.

At a high level, the “right” area and property type for passive cash flow in that range is going to depend a lot on your tolerance for older properties vs. newer ones, how involved you want to be with management, and whether you’re open to being a bit farther from the core for better yield.