@Eric LoweIf you cannot find a local firm, reach out to these experts who operate national firms:  @Bernard Reisz, @Yonah Weiss, @Julio Gonzalez. 

You operate a trade/business - then you have all deductions AND an obligation to issue 1099sB.

But unless their businesses are structured very carefully they're no operating in the clear. 

Since you have bought a foreclosure before, at least you have experience with the liens and the process, but you won't get a final tally of the liens unless you can get your title company to run soft title search for these things in advance.Closing on a foreclosure anywhere in Brooklyn seems like a nightmare to me from an operational end.

But honestly, there are multiple (mostly all) operating illegally.

But we are testing this now.We operate 7 str's out of state...

The main reason is other buyers who are better able to pin down operating costs will either outbid you because they have their costs right, or you'll outbid them because you have your costs wrong. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

I was thinking of doing Airbnb arbitrage in Cincinnati but discovered that there is a restriction that the STR operator has to live within 50 miles of the property.

It's finally a passive operation for me.