Selling in a year when your overall income is lower or pairing the flip with other business deductions can soften the tax hit.

Insurance at 175 a month could be right for a duplex, but I would want to sanity check the replacement cost, deductible, and liability since some carriers have been jumping.

For repairs that are critical for habitability, it makes sense to take care of them promptly, while other damages can often be addressed after they move out with deductions from the security deposit.

Tax-deductible expenses?

It simplifies the tracking of expenses, deductions, and depreciation under a single entity, which can be more efficient as you start out.

It accurately breaks down components, ensuring investors capture every available accelerated depreciation deduction and fully capitalize on the returning bonus depreciation benefits.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative Offer Price.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is your Offer Price.It is probably significantly below the asking price.

I don't want the yearly cost of the asset protection to turn good investments into bad investments..3) How can I deduct expenses from taxes?

Combined with the STR material participation loophole (averaging 7+ days per guest stay and 100+ hours of your own participation), those accelerated deductions can offset active income — which is the real power move most investors miss.Worth running the numbers with your CPA to see if a cost seg study still pencils out even without the bonus.

@Pedro GuillenDitto to what Ken said above, I don't think size matters if it's a good investment, but all of those factors are things to consider, and along with repairs, systems, and overall condition, you’ll also want to understand what’s deductible from a tax perspective.