Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

I’m *thinking* that if I start renting my original property this year and move to the new house as a primary, those repairs can be deducted?

Property Taxes: These are local taxes levied by the county or municipality on real estate.

Given that we deduct a lot on our taxes due our rentals we look cash flow poor when we are actually able to cover the debt service on a nicer home that is well more than $2500 that the lender currently says we can afford. 

When you use the BRRR method, since you are not doing upgrades but rather repairs, you can either deduct or depreciate all the work you do or hire out right?

Property tax is levied by the local municipality and needs to paid by the owner, regardless of where they live.

I got a quote from a surplus lines for $600 for 3 mos. with a $1K deductible which makes no sense.

The seller says I can just deduct the repair cost from the tenant security deposit. 

After the construction is over there will be no loan, just cash flow, which would results appx. in 10% after all other costs deducted.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.