However, when you factor in the HELOC, we have a negative / break-even cash flow (HELOC payments are about 25% of the revenue from both).

So that first year may be a 2 to 3k loss or break even unless he gets lucky. 

I think they were worried about breaking the lease or a new owner immediately canceling the lease.

We also give full 2.5 weeks off during the holidays because family and Christmas traditions are important to them.

The manager will either make or break the investment through their ability to navigate Section 8 and adapt to changes when they come up.

I found it near impossible to even break even out here when buying with little to nothing down, especially with the current rates. 

I feel it's a bit unfair and frankly I am not going to charge the tenant anymore than what the place is worth market rate because of its location and he is a great tenant (pays on time, keeps the place clean, communicative etc) I feel like i should even give him a break because he said he couldn't even be home since there was construction all summer due to building maintenance repairs. 

Even when it is completed there is ongoing monthly cost to keep the code from breaking and keep it secure and updated.

I've worked with a lot of investors who’ve done cost segregation, and the recapture part is always something that can catch you off guard if you don't think it through.Let’s break this down step by step..just like when I helped a buddy of mine who had a similar situation a couple of years ago, only he was dealing with a multi-family unit, not a single-family home.

It breaks my heart because he’s really trying his best.