Keep detailed records of repairs, improvements, and rental income, and consider working with a CPA specializing in real estate to ensure you're taking full advantage of deductions and strategies like passive losses, home office deductions, or even the Qualified Business Income deduction if applicable.Good luck!

Regarding the location of the Qualified Intermediary (QI), it doesn't matter whether they are based in New Jersey, Florida, or elsewhere.

Additionally, the study must be completed by “qualified individuals” and “professional firms” that are competent in construction, design, auditing and estimation procedures for building construction.So while a specific methodology isn’t required by the IRS, taxpayers must ensure that their depreciation deductions and classifications of property are substantiated with supporting evidence.

We are a small partnership with 4-5 properties currently, but we are growing and hoping to find a reliable lending partner that we can do repeat business with.About 3 months ago, we successfully completed a BRRRR deal where we had excellent numbers, over a 1.25 ratio at 75% LTV, our guarantor partner has an 800+ credit score, and we had no issues qualifying for the loan.

-- when would you look for the company to refiance into/what if you dont qualify-how do you kno itll go through/not get stuck with the hardmoneyloan?

Work with a real estate attorney to draft a formal agreement that outlines responsibilities and protects both parties. 

And you'll have a solid W-2 income to help you qualify for loans. 

How many mortgage lenders have you spoken with to get qualified and discuss allowable down payment options?

Because they know you'll probably never make a claim, or your claim won't qualify. 

These properties can provide cash flow and diversification while qualifying for favorable residential loans.