If your local law allows it, see what everyone else is doing and go by the norm. 3 months rent is a substantial amount for some, but really helps ensure the financial quality of a tenant.Sometimes I have immigrants who apply who work their tails off and can't afford the 3 months up front.

It's not unusual for one good person to apply, and they move in their half brother that just got out of prison or something.There's a lot more to look at than just income. 

Unless your first rental is 10+ units that law does not currently apply to you!

Classic american folks that think life does not apply to them.We're more than willing to help, **** I got no service to sell and nothing to offer.

@Craig Bowman Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

It's good that Miguelli is working with a competent local agent who knows what they're doing, knows the local rules that apply to his situation as well as what is customary for the market, and has done this before. 

One notable exception is that nonpassive losses can offset anything, which explains our current obsession with STRs.Specifically to your questions.1 - No, cannot apply PAL against dividends/interest but probably can apply PAL against your K1 income (as long as it distributes ordinary business income and not interest/dividends)2 - STRs do not unlock prior year PAL, and neither does Real Estate Professional status, by the way.

I'll investigate how well this can be applied to Austin market. thanks again!

The only penalties would apply if I’m taking out the earnings that the Roth IRA grew itself, correct?

To adjust your tenant screening criteria without any fair housing issues, it’s best to apply the new credit score requirement consistently from now on, treating all future applicants the same way.