@Muthu Subramaniam, the larger the number of units the easier it is to budget for and weather the ups and downs of property maintenance costs.A warranty will cost SUBSTANTIALLY more in the long run than the value you get from it.

If you choose to go down the lease option route be sure to hire an attorney that understand the very specific requirements need to be followed.Several years ago, Texas revised its lease option laws in response to widespread misuse by landlords who collected substantial option fees from tenants unlikely to afford the purchase, only to evict them shortly thereafter.

Replacing water heater is cheap but if you owned condo in upper stair and water heater is leaking, your damage cost can be substantial because it may flood all the way down the unit on the first floor.

I was told that offerings that we see on sites like fundrise may be inexperienced or not the best syndicators that may prey on inexperienced investors who don't have the ability to participate in syndications because of a lack of substantial capital and that capable syndication operators would not resort to posting on sites like that because they have a group of investors that trust them and they don't have to share a fee to the site.

Applicability of the tax or legal principles discussed in this material may differ substantially in individual situations.

You just really don't want to take this on if you can avoid it because you will automatically be in the hole with not only a non-paying tenant but the out of pocket costs of the eviction, which can be substantial.

If you sell your property, you can exclude some of the capital gain with the section 121 exclusion.There is no reason to use the exclusion if you don't sell.When you transfer your property to an LLC you don't have capital gain either.The only situation when it may make sense to capture the 121 exclusion in advance is when you convert your home to a rental, and you know that you will sell it in more than 3 years and you have substantial capital gain in it.

Determining whether the venture falls under a service or rental business hinges on the provision of substantial services; for instance, if a bed and breakfast service is offered, it must be reported on Schedule C, triggering a 15.3% self-employment tax.Moreover, personal use plays a crucial role in the classification of the property.

I'd love to get people's thoughts if anyone is interested in taking a look?

Furthermore, I have cultivated a substantial network comprising over 1500 potential high-earning investors with whom I've established professional relationshipsI acknowledge the significant barriers to entry in the multifamily sector.