I’ve seen a lot of owners sitting on meaningful paper losses but unable to use them because they’re missing proper structure or documentation around participation and REP.

Once you move out and officially place the old home in service as a rental, you can begin taking depreciation and deducting rental-related expenses.

During the closing process, I leased out the unit I had been living in at the Ravenswood property, officially transitioning that property closer to its intended income potential.Meanwhile, the garden unit situation took yet another turn.

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.

The effort of adding an ADU exceeds effort of a rehab, but proper rehabs add more value than their costs.  

First post — I’m officially diving into rental property investing, with house hacking as my first focus.

@Omar DolmusThis is going to come down to the code officials strict application of the code.

@Claude-Jacques TronquetHi Claude-Jacques, for the city-level requirement in Lorain, most out-of-state investors use a local property manager, real estate attorney, or a mail-forwarding service that can accept official correspondence on your behalf.

Do I need to keep hard copy receipts of business expenses in case of a tax audit  or are credit card statements that are categorized in Quickbooks sufficient proof ?  Thank you.  

—Today, the Commonwealth Court of Pennsylvania ruled that the borough of Pottstown’s ordinance allowing officials to search rental homes without a warrant based on probable cause is unconstitutional.