The activity is a significant participation activity, and you participated for more than 100 hours in each of several activities, and the total for all these activities is in excess of 500 hours.5.

You would need to come out of pocket for the excess, or else get the sellers to accept a lower value.Once you have a contract with an agreed upon amount for closing costs, it becomes the upper limit.

Then, twice a year, the manager makes an additional payment, based on the profits in excess of the fixed rate.

We prefer not to have pets but do a through screening of tenants and pets so hopefully avoid some of the excessive damages by getting good owners.

They take what they feel are comps and sort of average the price after adjusting for differences, then add a factor for excess or less Sq footage.So if 6 close comps sold for an average of $100K and averaged 1500 sq ft, all else equal, they would start at 100K then if the subject property was say 1650 ft they would add like $20-25 per foot for the additional 150 ft.

So, it is a liability UNLESS it produced income in excess of the expenses.

If the cost of an attorney and all of the filing costs that go along with it seem excessive, then you're probably not at a point where you need all that.

However, that amount of excess is recent due to my wife becoming full time where she works, so no nest egg built up yet.

I'm just applying the 50% rule that says 50% of gross scheduled rents will go to vacancy, expenses (taxes, insurance, routine maintenance, make ready costs, tenant damage in excess of deposits, utilities at least when its vacant, CPA fees, legal fees) and capital (roofs, floors, appliances, furnaces, sewer lines, etc.)

If yours exceeds that, you won't get much value for the excess.